The Mess That Greenspan Made

Are You Smarter than a 7th-Grader?

Next Thursday’s “Top Ten Only” debate amongst GOP presidential candidates is likely to draw the biggest audience ever for a gathering of White House hopefuls this early in the election cycle and the nation has none other than real estate mogul/reality show star/promoter extraordinaire Donald Trump to thank for that.

From the Drew Sheneman archive at the New Jersey Star Ledger.

Friday Morning Links

MUST READS
The Worst Expansion Since World War II Was Even Weaker – WSJ
Economy’s Top Speed Probably Overestimated for Years – Bloomberg
IMF refuses to join third Greek bailout without debt relief – MarketWatch
Bailout Money Goes to Greece, Only to Flow Out Again – NY Times
China is trying to save its market with failed policies – CNN/Money
China’s Stocks Fall to Cap Worst Monthly Decline in Six Years – Bloomberg
What I learned talking to stock-market investors in Shanghai, China – MarketWatch
Unintended (and Terrible) Consequences of GOP Debate Format – Fiscal Times
Jeb Bush Takes Positions on Climate Change, EPA Rules, Other Issues – Bloomberg
Insiders warn Jeb: Don’t engage with Trump – Politico
How Rich People Raise Rich Kids – Atlantic
The Complex Story of American Debt – Pew Research

MARKETS/INVESTING
China drops, other markets up after US data – AP
The thing about flat stock markets – Fortune
China’s Stock Markets: Nearly 25 Years of Wild Swings – WSJ
Bears Outnumber Bulls, Many Can’t Decide: AAII – Barron’s
Hedge fund Elliott eyes fresh market turbulence – Reuters
Treasury Buyers Can’t Get Enough as Fed Hike Looms – Bloomberg
7 “Saves” in 7 Months: A Market Going Nowhere Fast – of two minds
Gold heads for longest weekly losing streak in 16 years – Reuters
Gold ‘fire sale’ offers refuge from the Fed – MarketWatch
PEAK GOLD vs. PEAK SILVER: Must See Chart – SRSrocco Report
Prepare for gold prices to plunge…as low as $350 – CNN/Money

ECONOMY/WORLD/HOUSING/BANKING
Current economic conditions – Econbrowser
If It Takes 3 Years For The 2012 Slowdown To Hit GDP… – Alhambra Partners
Why Do So Many Americans Choose Not To Enter The Workforce? – Zero Hedge
Eurozone inflation and unemployment hold steady in July – BBC
Russia’s central bank cuts key interest rate – AP
Japan Spending Slump Heightens Chance of Contraction – NY Times
Liar Loans Pop up in Canada’s Magnificent Housing Bubble – Wolf Street
Brooklyn Home Sellers Name Prices and Get More – Bloomberg
Bill Gross says Fed recognizing zero percent rates causing harm to U.S. – Reuters
The Fed’s Bathtub Economics Brigade Blathers On – Contra Corner

 

Given the remarkable increase in the number of stock trading accounts and soaring margin debt in China over the last year or two, stories such as the one below about a farmer losing his life savings (and then some) should be expected, but, after seeing this man’s distress and learning of the dollar amounts and approach involved, it is a little surprising.

Investing his entire stake of $164K in one company and then being extended $1 million in margin probably weren’t the best moves Yang Cheng could have made.

Clearly, the government should have provided some basic instruction about investing in stocks when they began their effort to promote stock ownership. Maybe they did and he thought he knew better – the only thing missing from this sordid tale is the claim that Yang Cheng at one point was worth $4 million, or something like that.

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Thursday Morning Links

MUST READS
Fed: Prepare for rate hike in 6 weeks – CNN/Money
Alan Greenspan: This is ‘extremely dangerous’ – CNBC
China’s Great Short Seller Turns Bullish – Bloomberg
Gold Bets Weigh on Paulson and Einhorn – Barron’s
Einhorn Punished by Gold as Greenlight Re Drops 16% – Bloomberg
Hay for cheese? Barter booms in cash-squeezed rural Greece – Reuters
More Millennials Living With Family Despite Improved Job Market – Pew Research
Wall Street’s Secret Dividend from Fed May Go to Fixing Potholes – Wall St. on Parade
Canada Just Bought Israel’s Iron Dome Radar Technology – Vice News
All 512 animals Teddy Roosevelt and his son killed on safari – Vox
Trump’s Net Worth Isn’t His Only Claim That’s Fake – Fiscal Times
Donald Trump surges, Jeb Bush slumps – Politico

MARKETS/INVESTING
Stocks higher on earnings, ahead of US data – AP
1 In 5 US Stocks Now In Bear Market – Zero Hedge
Letting China’s Bubble Burst – Project Syndicate
Chinese farmer invested life savings in stocks, lost it all – CNBC
Chinese stocks end lower after wild swings – MarketWatch
Gold falls 1 pct as dollar rises on Fed rate expectations – Reuters
What You’ve Heard About Gold and Interest Rates Is Wrong – Casey Research
Deutsche Bank’s Gold Price Outlook: A Contrarian Indicator? – GoldSilverWorlds
The cheapest entry point into cheap gold – Mining.com
Stock picks at $1000/oz gold – Mineweb

ECONOMY/WORLD/HOUSING/BANKING
The Confidence Experiment – Alhambra Partners
Independent Contractors and the Emerging Gig Economy – AAF
Conference Board of Canada sees disappointment ahead for economy – FP
Spain’s economy grows at its fastest rate since beginning of 2007 – ET
BOJ’s Ishida Warns of Stimulus Costs, Future Imbalances – NY Times
Brazil Raises Benchmark Rate to 14.25% From 13.75% – Nasdaq
The Shaky Foundation For U.S. Housing-Price Growth – WSJ
What’s Left of the American Dream Withers at Record Pace – Wolf Street
To Fix the Fed, Simplify It – NY Times
FOMC Recap – Fed Watch

 
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