Article Index
Financial Crisis

Genius from The Big Short Predicts Next Financial Crash Is Coming Eccentric and hard rock–loving hedge fund manager Michael Burry (brilliantly interpreted by Christian Bale in the recent Hollywood movie The Big Short) warns that another major financial crash is looming. This may be a financial crisis warning…

The Federal Reserve’s reckless monetary policies have created a colossal asset bubble, which could trigger a stock market crash and global economic collapse in 2016. At least, that’s the opinion of famed market commentator Marc Faber. In an interview with CNBC on Wednesday, the editor and publisher at…

Moody’s and Fitch did this last spring. Standard & Poor’s (S&P) has joined them by downgrading Japan’s economy rating from AA- to A+, sending a strong signal that the rating agency is not bullish on “Abenomics” pulling the country out of economic collapse mode. All this despite the…

Late last year I wrote an article suggesting the U.S. could enter a depression in 2015. To some it sounded farfetched at the time. After all, the stock market was at record highs and investors remained bullish. But it seemed to me that all the economic evidence pointed…

Less than a decade after the biggest financial crisis since the Great Depression, over-zealous central bankers are risking a second economic collapse. The continuous credit creation and rock-bottom interest rates in the U.S., China, the EU, and Russia are meant to incentivize lending, but really they are engineering…

As the Greek debt crisis winds down, world markets are reverting to business as usual without acknowledging a fundamental truth: Greece was only the beginning. Many countries have used nothing but debt to fuel their growth, laying the groundwork for a mega-sized economic collapse. A key study by…

There seems to be a trending theme in today’s economy—borrowers cannot pay their debt. This time, the spotlight is on oil companies. Low oil prices have forced many energy drillers to the financial brink, and analysts fear a wave of defaults could set off another financial crisis in…

On Sunday, June 7, 2015, the Government of Iceland agreed  to present before Parliament two bills of legislation sponsored by the Minister of Finance and Economic Affairs. Together, the two bills lay the foundation for a comprehensive strategy for capital account liberalization. (Source: Iceland Prime Minister’s Office, June…

The thought of an economic crisis in 2015 is all too distant for too many. With the S&P 500 advancing 200% since its bottom in 2009, it’s worth taking some time to pause and reflect. As is often the case, the most devastating risks are those that we…

Credit card companies are some of the best indicators in the global economy. Visa Inc. (V) just reported a pretty decent quarter. While earnings were down comparatively due to a one-time charge, adjusted earnings handily beat consensus. The company’s fiscal fourth quarter came in solid, with growth of…

Now that the Dow Jones Industrial Average has fallen 1,035 points (six percent) from its mid-September peak, the question investors are asking is “how far will she go?” For small-cap investors, the drama is greater, as the Russell 2000 Index has fallen 12.5% from its July peak. Since…

Getting a sense of where stocks are going to go in the year ahead is always difficult with the major indices at their all-time highs. The fundamental backdrop is still very favorable for equities. While the Federal Reserve has put off raising interest rates for the near future,…

According to the U.S. Congressional Budget Office, next year, the government is expected to incur a budget deficit of $469 billion and then another budget deficit of $536 billion in 2016. (Source: Congressional Budget Office web site, last accessed July 21, 2014.) From there, the budget deficit is…

We 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…

Everything in the stock market experiences its own cycle of enthusiasm among investors. And this is especially well illustrated among speculative issues. There was a time only a few years ago when some of the hottest speculative stocks were in solar energy. Now this small equity universe is…

I’m going to put aside my daily ranting about the stock market and the economy today to bring what I believe is an important story to the attention of my readers. There is no doubt you’ve heard about how poorly the city of Detroit, Michigan is faring now that…

It’s a difficult environment in which to be constructing new equity portfolios right now, mostly due to the very simple reason that the stock market is at an all-time record high and it’s likely that monetary policy will change soon. But there is still a great deal of…

With the Dow Jones hitting 17,000 being pretty likely in the not-too-distant future, from there, it’s only another 18% or so until the Dow hits 20,000, which is pretty incredible. These numbers seemed so unrealistic just a few years ago but now, it’s not too farfetched. The most…

The Dow Jones Transportation Average keeps powering ahead, and the rest of the stock market is very close behind it. The strong performance of this index is confirmation of further Dow theory gains. The Dow Jones Industrial Average has been fighting its way higher since May 20. Some…

This stock market continues to show material resilience as financials have turned a bit and are helping the S&P 500 index. Wells Fargo & Company (WFC) just hit a new record-high on the stock market with a forward price-to-earnings ratio of just under 12, offering a 2.8% current…