DEFLATION and yet another reason to Buy Equities
With the Sovereign Debt Crisis, Bail-Ins, Cycle of War, Global Contraction if Capital Flows & Investment, welcome the age of DEFLATION and yet another reason to BUY equities. TheNASDAQ Composite is up 50.9% from the 2007 high as of the close of July. This index still has the capability of reaching 650000 level compared to the 2000 high of 513252.The S&P500 is up only 22.49% for the same period while the Dow Jones Industrials is up 15.9%,
There is no question, where do you put your money? If you cannot trust banks, bonds are risky, cash is being eliminated, FATCA is reducing investing overseas, just ask yourself – what is left? Capital is being driven into equities and the retail public is still not in like it was, liquidity remains low, the talking heads keep saying this is bubble, and the Fed along with the Bank of England are contemplating rate hikes of quarter point changing the trend. They will recognize that Europe is caught in the Euro vortex of disintegration and will depart from their policies and pay attention to the asset booms domestically.
There will just be no place to stuff serious money BUT equities.
Bail-In v Bail-Out
The stark difference that is being marketed behind the curtain is that taxpayers should not be burdened with bailing-out banks. Depositors and bond holders should be made to pay as in any other situation. The “bail-in” v taxpayer-funded “bail-out”, is a philosophy that is sweeping the entire political system. But there is a serious problem. Those who deposit money in banks should have FULL disclosure if the bank is involved in proprietary trading even through a subsidiary. Bondholders and shareholders in banks should be aware that their capital is going to be at risk for proprietary trading in banks that ALWAYS, and without exception, blows-up in everyone’s face consistently since Philip Brothers took over Solomon Brothers..
The repeal of Glass-Steagall by President Clinton instigated by Goldman Sachs’ Robert Rubin was the worst event in post-Great Depression history. Electing Hillary Clinton will be a huge disaster for she will NEVER admit that this was even a mistake. After all, it was really Hillary who was running the White House back then – not Bill. So there is no possible way Glass-Steagall will be reversed any time soon for the Democrats will not accept responsibility for the error of their ways. Hillary will not admit such a mistake that Bill signed for she was deeply a part of that decision.
It simply looks like we will have to suffer the next great banking collapse that will make the 1930s appear like child’s play. The integration of these derivative products that are far too complex for bankers to even understand is so wide-spread, that the contagion will be devastating and cross borders rapidly. Even the absolute immunity for NY bankers they have paid for dearly will not prevent the disaster that looming on the horizon.
The bail-in contagion is spreading. Canada is adopting it. Australiais now studying the problem and it too recognizes that this will become the default posture for all other governments will move in that direction and if Australia tried to use taxpayer’s money it would be sucked up overseas.
So welcome the bail-in. It is here to stay. Just more DEFLATIONand yet another reason to buy equities.
The Second Murder by Police St Louis
This video shows a call about a man who stole a couple donuts. He stays there waiting for the police to show up. They get there are tell him to drop a knife and just kill him with multiple shots. There is no attempt to disarm him and he is not even lunging at the police. They seem to think they have the right kill people outright. This is the attitude of police in Russia and Eastern Europe where people fear the police. They seem to be adopting the same attitude in the United States. Do as they command or they have a right to kill you on the spot.
A 22-year-old man was shot and killed last week in an Ohio Wal-Mart after failing to obey police officers’ orders to put down a bb/pellet rifle he was holding that he was buying. Beavercreek police say officers followed proper protocol when they shot John Crawford III in the store. This is the entire problem. There is no law against these police for firing multiple times and just killing people. There isNEVER an attempt to simply disarm an individual. Someone holding a toy gun in a Wal-Mart just might not understand that the police are too stupid to realize it is a toy.
Police should be disarmed. If they see someone with a gun, call a special swat team. These are police qualified to hand out tickets, that is the extent of their capabilities anymore. They seriously lack good judgment.
The United States is being exposed worldwide for its out-of-control police force and the corruption in the prosecutorial branches that boast of conviction rates that are better than 98%. The presumption of innocence is just a myth. There is no such thing.