The Dumb Money is Helping the Smart Money Exit the Stock Market

By David Haggith – Re-Blogged From The Great Recession Blog

Bloomberg this week ran a story telling us how the smart money gets out of the stock market when it hits its all-time peak and how the dumb money helps the smart money out. Only they didn’t know that was what they were writing. It typically happens this way:

At the end of a deliriously euphoric market rally when the market is preparing to crash, all the Joe Six-packs, mom and pop and the family dog open trading accounts and try to chase the tail of market action. Many throw in their entire retirement funds, pawn the dog’s collar and take out loans on credit cards to buy in as much as they can. By buying in late, they help provide a smooth exit for the smart money. At least for some of it. It is the little guys, tough from hard labor, whose muscles are employed to push the money bags of the rich to the top of the mountain from which the little guys are allowed to jump off.

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Sacrificing Future Spending

By Gary Christenson – Re-Blogged From

Financial sacrifices are so obvious and commonplace they are seldom acknowledged.

Borrowing money on a credit card, mortgage or car loan to purchase something is typical. You have sacrificed future spending for use in the present.

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Are Intragovernmental Holdings Real Debt?

By Scott Anderson – Re-Blogged From Seeking Alpha

[This article orignally was written over 5 years ago. I’ve update the numbers to today. -Bob]

As everyone who is paying attention knows, the amount of US debt outstanding is fast approaching $20.5Trillion. But whom do we owe it to? Most of the debt, about $14.8T of it, represents debt held by the public. This portion of the debt is easy to comprehend. It could be bonds held by investors, savings bonds given to children, bonds purchased by the Chinese government, or even bonds purchased by our good buddies at the Federal Reserve. The remaining balance of $5.7T, known as “Intragovernmental Holdings,” is what I would like to discuss today.

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White House Seeks 72 Percent Cut to Clean Energy Research

From the Washington Post

The Trump administration is poised to ask Congress for deep budget cuts to the Energy Department’s renewable energy and energy efficiency programs, slashing them by 72 percent overall in fiscal 2019, according to draft budget documents obtained by The Washington Post.

Many of the sharp cuts would probably be restored by Congress, but President Trump’s budget, due out in February, will mark a starting point for negotiations and offer a statement of intent and policy priorities.

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US Public Debt Surges By $175 Billion In One Day

By SRSrocco – Re-Blogged From

After the U.S. Government passed the new budget and debt increase, with the President’s signature and blessing, happy days are here again.  Or are they?  As long as the U.S. Government can add debt, then the Global Financial and Economic Ponzi Scheme can continue a bit longer.  However, the days of adding one Dollar of debt to increase the GDP by two-three Dollars are gone forever.  Now, we are adding three-four Dollars of debt to create an additional Dollar in GDP.  This monetary hocus-pocus isn’t sustainable.

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Global Synchronized Bond Collapse

By Michael Pento – Re-Blogged From

We have all heard, in ad nauseam fashion, Wall Street’s current favorite mantra touting a global synchronized economic recovery. For the record, global GDP growth for 2017 was 3.7%, according to the International Monetary Fund. And, although this is an improvement from recent years, you must take into account that in 2004 it was 4.4%, in 2005 it was 3.8%, in 2006 it was 4.3%, and in 2007 it was 4.2%. The Point being, it’s not as if the current rate of global growth has climbed to a level never before witnessed in history—it’s not even close.

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Illinois’ Debt Crisis Foreshadows America’s Financial Future

By Clint Siegner – Re-Blogged From

Those wanting a glimpse into the future of our federal government’s finances should have a gander at Illinois. The state recently “resolved” a high-profile battle over its budget. Taxpayers were clubbed with a 32% hike in income taxes in an effort to shore up massive underfunding in public employee pensions, among other deficiencies.

But, predictably, it isn’t working. People are leaving the state in droves.

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