Yet Another Reason The Tax Bill Stinks

By Rick Ackerman – Re-Blogged From http://www.Silver-Phoenix500.com

It’s just like Wall Street (and its mouthpiece, The Wall Street Journal) to get all lathered up over supposed tax reform that has little more going for it than the usual heap of manure we’ve come to expect from Congress.  I made this point recently in discussing some fine print in the tax bill that would keep the alternative minimum tax for corporations. It were as though the Magna Carta had retained a provision that shoplifters be drawn and quartered in the public square.

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December FED Rate Hike?

cropped-bob-shapiro.jpg   By Bob Shapiro

It looked as if the FED had decided to go all in with money printing. And, it looked like the FED officials were lying through their teeth with all the jawboning since Janet Yellen became FED Chief. Not only was the FED continuing with ZIRP and QE money expansion, but also Negative Interest Rates. But something may have changed the last couple of weeks.

Since a month ago, interest rates have gone up. It’s not enough to call it a spike, but up nonetheless.

US Treasury Yields 110815

Short rates – on 3 month T-Bills – went from a low of -0.04% to a recent high of 0.06%, although they have settled back a little to 0.04%. However, over the rest of the yield curve, from 6 mo and 2 year up to the 10 and 30 year maturities, yields are up by a quarter percent or more.

The odds of the FED actually raising rates “officially” at their December meeting, are starting to look good.

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Why We Can’t Handle An Equities Bear Market, Part 1: State Budgets Will Implode

By John Rubino – Re-Blogged From http://www.DollarCollapse.com

Back when society’s balance sheet was reasonably solid, the occasional bear market was no big deal. A 20% drop in the average S&P 500 stock would scare investors and lead to slight declines in consumer spending and government capital gains tax revenue, but the overall economy would barely notice such a minor speed bump.

But that was then. Like a person with an impaired immune system, today’s developed world is so highly leveraged that a shock of any kind risks catastrophic complications. Which is why governments and central banks now meet every incipient crisis with quick infusions of newly-created cash and lower interest rates. We can’t risk letting markets be markets any more.

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