European Central Bank

Another Warning Sign: Stocks Hit Highs on Collapsing Volume

By Friday, September 5, 2014

The Only Bear Left StandingSo the S&P 500 has touched the 2,000 mark.

Will the S&P 500 continue to march to new highs?

Well, my opinion towards the stock market hasn’t changed. I remain skeptical for a variety of reasons, many of which I have shared with my readers over the past few months.

But I have a new concern about the stock market, something that hasn’t been touched on by analysts: trading volume … Read More

My Poor Italy

By Wednesday, August 6, 2014

Why This Stock Market Will Fall Like a RockThis morning came the news that Italy, a country very close to my heart (just look at my last name) and the third-biggest economy in the eurozone, is back in recession.

And Germany, the biggest economy in Europe, saw factory orders in June drop by the most since 2011.

While the financial media has taken the focus off the eurozone over the past couple of years, I have continued to … Read More

The Only Sector I See with a Ten-to-One Return Potential

By Friday, June 27, 2014

Shattering the Myth Behind Interest Rates and GoldWe are hearing more and more about interest rates getting ready to rise. The Federal Reserve itself has said it expects the federal funds rate to increase to 1.5% by the end of next year and to 2.25% by the end of 2016.

Before the Fed came out with its forecast, I was writing about how the Fed will have no choice but to raise interest rates because inflation is … Read More

Double Bottom in for Gold Prices?

By Tuesday, May 20, 2014

Gold Bullion Fear Index CollapsesWhile the Federal Reserve has cut back on its money printing program, the fact of the matter is that the “official” U.S. national debt is closing in on $18.0 trillion. The unofficial national debt (when obligations like Social Security, Medicare, Medicaid, welfare, and now Obamacare are taken into consideration) is closer to $200 trillion.

The Japanese national debt just hit one quadrillion yuan.

Many countries in the eurozone are drowning … Read More

The Biggest Race to Print Paper Money in History?

By Tuesday, August 27, 2013

270813_PC_lombardiMany central banks within the global economy are involved in printing more of their paper money (often referred to as “fiat” currencies). There’s a race to devalue currencies in hopes to revive economies and maintain a competitive stance. Countries believe that by printing more of their fiat currency, they can improve their exports to the global economy, because the goods will be cheaper for those countries that have a stronger … Read More

If the Shanghai Composite Index Is a Leading Indicator, Watch Out!

By Friday, February 15, 2013

Is a Leading Indicator Watch OutExport-oriented provinces in the Chinese economy have turned pessimistic and anticipate exports will only grow at the rate of five percent this year. In 2012, they targeted an export growth rate of eight percent to 10%.

What’s troublesome about this is that exports from the Chinese economy account for 20% of the country’s gross domestic product (GDP). This means that, if exports from China to other countries decline, the Chinese … Read More

No Quick Fix for Eurozone; a More Difficult Road Ahead

By Friday, February 15, 2013

The eurozone credit crisis is taking center stage once again. As I have been saying in these pages, it is far from over, even though the European Central Bank (ECB) has announced that it will do “whatever it takes” to save the eurozone. Economic conditions in the region are still deteriorating.

The debt-infested countries in the eurozone are reaching their lows with widespread economic slowdown, but I am more concerned … Read More

The Municipal Bond Threat: Another Reason Money Printing Can’t Stop Anytime Soon

By Thursday, January 24, 2013

Money Printing Can’t Stop Anytime SoonBefore I get into my rant today about the troubled municipal bond market, first I have to say that I just couldn’t believe it when I saw this cross the newswire yesterday:

On Wednesday, January 23, 2013, Congress voted to “temporarily” do away with the U.S. government’s debt ceiling. Once the Senate passes the measure and the President signs it, there will be no limit on the amount of money … Read More

Why Greece’s Depression Could Lead to a Global Recession

By Thursday, January 24, 2013

While the eurozone crisis is not front-page news like it used to be about a year ago, I see economic conditions in the eurozone actually getting worse. The economic slowdown in the region is becoming more severe as the days pass—even with the European Central Bank announcing it will do “whatever it takes” to save the eurozone.

In a recent review; the International Monetary Fund (IMF) said it expects Greece … Read More

Why U.S. Dollar’s Continued Fall Is Written in Stone

By Wednesday, December 12, 2012

Written in StoneWhen the U.S. economy was on the verge of collapse after the financial crisis of 2008, the Federal Reserve came to the rescue. The central bank provided the financial system with quantitative easing—it printed money and bought bad debt from the big banks.

Today, the Federal Reserve will meet and discuss the further purchase of bad debt from the big banks or some other form of monetary stimulus. To me, … Read More