Mainstream Economics is a Cult

by | Jun 30, 2012 | Financial-Blogs

Neoclassical Economics – Guided by Mythical Assumptions – Is Divorced from Reality     Neoclassical economics is a cult. Economics professor Steve Keen notes: Neoclassical economics has become a religion.  Because it has a mathematical veneer, and I emphasize the word veneer, they actually believe it’s true. Once you believe somethin…

Beware of Bonds

by | Jun 30, 2012 | Markets, Stocks

In his keynote address at the Morningstar Investment Conference, Jeremy Grantham simply declared bonds “disgusting.” More politely, William Bernstein says bond investors are faced with “an extreme low return/high risk proposition.” Bernstein suggests that bond investors now are in the … <a href="http://www.institutionali…

A Chance To Make 50% On Apple With Little Downside Risk

by | Jun 30, 2012 | Financial-Blogs

By Timour Chayipov

How many times have you bought a fundamentally good stock after it had dropped 10 percent or more and found later that the down trend continued and stock lost another 10% or more?

Like anybody else I hate to lose money (remember rule #1 – don’t lose money)

I’m not a chartist; technical analysis has never worked…

LIBOR 4-1-9

by | Jun 30, 2012 | Financial-Blogs

I remember the first time I had to toil through the turgid definitions and legal boilerplate constituting the LIBOR provisions of a typical syndicated loan agreement. I remember saying to myself I hope I never have to look at this shit again.
But it was not to be.
During the course of my career I had to read the same whiteshoe goobldygook over and …

Devalue the Euro?

by | Jun 30, 2012 | Financial-Blogs

Holy smokes! The EU technocrats have finally pulled out the big guns! The agreement on Friday was to take the incredibly bold step of avoiding subordination in the Spanish bond market. The money needed for the busted Spanish banks will now be made available directly from Brussels with few strings attached. Wow! What a breakthrough!
Global markets hav…

YTD MSCI Developed Markets Index Performance

by | Jun 30, 2012 | Markets, Stocks

Since it’s the end of the half, we thought we’d post MSCI Developed Markets Index Performance for the year. Greece, Portugal, Spain, and Italy bringing up the rear are no surprise. (Who declared Greece a developed country anyway?) We like buying things … <a href="http://www.institutionalimperative.com/2012/06/30/ytd-msci-developed…

Foie gras and Illegal Immigrants

by | Jun 30, 2012 | Financial-Blogs

Wolf Richter   www.testosteronepit.com
The other day, we were doing one more time what on Sunday will become illegal in California: eating foie gras in a restaurant. Pan seared foie gras “traditionally raised in Sonoma, California,” served with poached local apricots. I’d go to jail for this anytime. We were sitting at the…

Over 2.5 million delinquent mortgages to be resolved this year; shadow inventory shrinking quickly

by | Jun 30, 2012 | Economy, Financial-Blogs, Housing, Markets

In spite of the fear mongering taking place in the media and in the blogosphere with regard to the US housing “shadow inventory”, considerable progress is being made in shrinking the oversupply of distressed properties around the country. CoreLogic: -As of April 2012, shadow inventory fell to 1.5 million units, or four-month’ supply and represent…

The Dark (Pool) Truth About What Really Goes On In The Stock Market

by | Jun 30, 2012 | Financial-Blogs

Courtesy of the author, we present to our readers the following excerpt from Dark Pools: High-Speed Traders, AI Bandits, and the Threat to the Global Financial System, by Scott Patterson, author of The Quants.
In early December 2009, Haim Bodek finally solved the riddle of the stock-trading problem that was killing Trading Machines, the high-frequen…

Crude Oil Market: A Perfect Bear Storm Despite the Euro Pop

by | Jun 30, 2012 | Financial-Blogs

By EconMatters
Crude oil prices, along with world stocks, surged on Friday after euro zone leaders reached an accord on directly recapitalizing regional banks as well as measures to cut soaring borrowing costs in Italy and Spain.  Brent crude jumped more than 7% in one day to close at $97.80 a barrel, while WTI also settled up 9.36% to $84….