Federal Reserve Hesitates on QE Unwind / Balance Sheet Reduction

Is the Federal Reserve’s Great Unwind already coming unwound? I thought it would be good to check up on Federal Reserve balance sheet reduction since the Fed is supposed to be up and running on the move out of quantitative easing this month. It should be fascinating to see what progress the […]

Here’s You and Here’s the Top Ten Percent

In a nutshell, here is a graph that summarizes everything you need to know about the US economy. Unless you’re in the top ten percent of income producers in the nation — or, at least, living in their neighborhood — you are living in a dingy bedroom economy that has […]

Yawning Debt Trap Proves the Great Recession is Still On

While David Stockman stated early this year with resolute certainty that the debt ceiling debate would blow congress up and send the nation reeling over the financial precipice, I avoided jumping on the debt-ceiling bandwagon. While I was convinced major rifts in the economy would start to show up in […]

Nuclear Stupidity: Tillerson Says Diplomacy Continues Till First Bomb Drops

“Secretary of State Rex Tillerson says President Donald Trump wants him to push forward on diplomacy with North Korea “until the first bomb drops.” (Bloomberg)   Brilliant! That means until the first entire city is destroyed. At least, that is what it could easily prove to mean … unless he […]

US Stock Market Whistles Past the Graveyard

It was a summer fit for the start of the Epocalypse followed by a fall where every event leans into Halloween. Summer began with a total solar eclipse that cast a long shadow across the nation from sea to shining sea, and fall began with hurricanes, mass bloodshed and fire. And through […]

I Know What the Economy Did Last Summer Part 2: The Real Estate Rollover

In fact, I knew what the economy did last summer before summer even began. Since the beginning of the year, I have been writing that it appeared housing was reaching a new bubblicious peak and that the real estate market was getting ready to roll over. Just before the start of the summer, I […]

I Know What the Economy Did Last Summer Part 1 : Carmageddon and the Retail Apocalypse

Summer closed in a whirlwind of weather chaos for the United States and its territories. At the start of the summer, the US economy began to show signs that it was flying apart. The two most obvious were the big blowouts in the auto industry and in retail, not all […]

Hurricanes Harvey and Irma May Lend Helping Hand to Economy, but Hurricane Iniki and Katrina Tell More Complex Longterm Tales

It is widely believed that World War II gave us the end of the Great Depression. As a result, people have said for decades there is nothing like a wartime economy to bring recovery from economic recession. War blows apart a lot of things, so you have to make a […]

Wars and Rumors of Wars: Fire and Fury Signifying Nothing? Stock market caught in the crossfire

August is a sultry month for stocks as markets thin out during the dog days of summer. Everyone leaves investing for a break from the heat. Statistically, August is the worst month for overall stock performance, while September delivers more of whatever August sends its way or brings its own […]

Graphic Anatomy of a Stock Market Crash: 1929 stock market crash, dot-com, and Great Recession

The 1929 stock market crash became the benchmark to which all other market crashes have been compared. The following graphs of the crash of 1929 and the Great Depression that followed, the dot-com crash, and the stock market crash during the Great Recession show several interesting similarities in the anatomy […]

Continue to Beware the Job Numbers (Is it the Bureau of Labor Statistics or Bureau of Lying Statistics?)

One reason I started my own economics blog was because of how tired I was of reading government-regurgitated half truths about the economy. Nothing has changed. As Newsmax and other publications report this week that July was a bumper month for lower-wage earners, I continue to have to sift for […]

(Cashless Society) Machine Mania in the Marketplace: How Computers Came to Own the World

With 60% of stocks now being traded by bots that fake each other out in order to create buying opportunities, stock exchanges have lost their connection to the reason markets are created in the first place. The exchanges no longer exist as places for people to buy and sell ownership […]

US Economy Keeps Moving Into Summer Storm

One of the kookiest moments last month came when Fed Chairwoman Yellen spoke about seeing no financial collapse in sight during our lifetimes “Would I say there will never ever be another financial crisis? No. Probably that would be going a little too far, but I do think that we’re […]

The Broken States of the Union

For the first time in US history a handful of US states is teetering on the edge of bankruptcy. Illinois is about to be downgraded to junk bond status, which will turn its financial problems catastrophic overnight. Illinois cannot possibly pay its accumulated debt, its unpaid medicaid expenses and its […]

US Baits ISIS to Stage False-Flag Chemical Attack to Justify Greater US Attack against Syria

What could be smellier and more tempting bait to get ISIS to launch a chemical-weapon attack than a US guarantee that “any” chemical weapon attack in Syria will be automatically blamed on Assad’s regime and will automatically result in the US attacking Assad and all of ISIS’s other enemies? Today […]

Central Banks Buying Stocks Have Rigged US Stock Market Beyond Recovery

Central banks buying stocks are effectively nationalizing US corporations just to maintain the illusion that their “recovery” plan is working because they have become the banks that are too big to fail. At first, their novel entry into the stock market was only intended to rescue imperiled corporations, such as General […]

Retail Apocalypse Engulfs US Economy

You may not see it yet, but the scale of the retail apocalypse is so massive that it is about to engulf the US economy. As when a flood tide has crept around you on all sides while you were standing on a high spot out on the flats, not […]

Carmageddon Crashes into “the Recovery” Right on Schedule — EXACTLY as Predicted Here

    Carmageddon, as Wolf Richter has called it, is hitting the US economy exactly as I said a year and a half ago would start to happen at the very end of 2016 or the start of 2017. Measured year-on-year, auto sales have declined every month of 2017, and are […]

Is the Central Bank’s Rigged Stock Market Ready to Crash on Schedule?

We just saw a major rift open in the US stock market that we haven’t seen since the dot-com bust in 1999. While the Dow rose by almost half a percent to a new all-time high, the NASDAQ, because it is heavier tech stocks, plunged almost 2%. Tech stocks nosedived while […]

Summer Storm Keeps Building as Second Dip of Great Recession Approaches

These updates to my list of  “Seven Troubles Assailing the US Economy” are far too important to remain buried at the end of that article since many readers may not return to the article to check for updates. The summer economic crisis I’ve been predicting is building even more rapidly than when […]