The Mess That Greenspan Made - Part 18

Elizabeth Warren on Banks and Student Loans

From just last week, watch Senator Elizabeth Warren (D-MA) grill Consumer Bankers Association CEO Richard Hunt on the slow progress being made by commercial banks to allow the discharge of student loan debt that was co-signed by parents or grandparents of children or grandchildren whose lives were cut short.

You have to wonder how long it will take for the culture and practices of Washington D.C. to wear down Ms. Warren. Most of what she advocates is simply common sense, however, most of this common sense runs counter to the vested interests of powerful forces that remain firmly in control of what goes on in the nation’s capital.

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Tuesday Morning Links

MUST READS
China Services Index Falls to Record Low – Bloomberg
S&P: Wealth gap is slowing US economic growth – AP
The Real Solution to Wealth Inequality – The Nation
Blame These Five Sectors for a Weak U.S. Economy – NY Times
ISIS just took a town in Lebanon. Wait, Lebanon? – Vox
Isis brings war to Lebanon – and it could be key to a masterplan – Independent
Europe’s tough new regime for banks fails first test in Portugal – Telegraph
Lacker Says Markets May Be Surprised by Pace of Rate Rise – Bloomberg
Fed’s 3rd Bubble This Century Heading For 20% Tumble – Contra Corner
Has paper money outlived its purpose? – Money & Banking
World War One and the End of the Bourgeois Century – Mises
Asia’s Next Crisis Is a Flood of Debt – Bloomberg
History of Ebola outbreaks – CNN/Money

MARKETS/INVESTING
Europe up but Asian stocks dip on China – AP
Why the Bond Market Is Poised for a Plunge – Fiscal Times
Warning: That plunge in stocks is just the beginning – MarketWatch
Gird Your Portfolio for Inflation Over Growth – Real Clear Markets
Is it just a pullback, coming correction or beginning of bear market? – USA Today
Treasuries Catching Up to Corporate Bonds on Demand for Safety – Bloomberg
Gold up slightly but limited by dollar, European equities – Reuters
Gold Industry Takeovers Climb to Highest in Three Years – Bloomberg
Gold Mining: Fuel Costs Explode Over The Past Decade – SRSrocco Report
Chinese Gold Demand 1063 MT YTD – BullionStar
Gold may be entering a golden age – MarketWatch

ECONOMY/WORLD/HOUSING/BANKING
How America’s Top Industries Have Changed, 1990-2013 – WSJ
Federal Government Pays Workers $5 Million to Not Work – Fiscal Times
Conflict between US-led and China-led economic architecture – voxeu
In Asia, Corporate Cash Piles Come Under Attack – WSJ
India holds rates steady on monsoon worries – Channel News Asia
Russia sanctions risk British jobs, warns JCB boss – Telegraph
Mortgage closing costs soar more than 20% – CNN/Money
Goldman Sachs’ on House Price Seasonal Adjustments – Calculated Risk
U.S. housing market: Stuck in a multi-year hangover – Fortune
Inflation Hawks: The Job Killers at the Fed – HuffPost
Spot The “Data Dependent” Fed Policy – Zero Hedge
Can China fight the Fed? – MarketWatch

 

After rising for six weeks, gold and silver prices fell for the third straight week as bearish forces strengthened, the most important being an improving U.S. economy that has led many investors to think the Federal Reserve will raise interest rates sooner rather than later.

GoldThough the disappointing labor report on Friday cast new doubt on the pace of the recovery and led to a gold market rally, data released earlier in the week on economic growth and wage increases pointed to a less accommodative central bank and a stronger dollar later this year and early in 2015.

Safe haven demand continues to be one of the very few positive near-term catalysts for precious metals and, given recent developments in Ukraine and the Middle East, this could drive prices sharply higher at any time. B

ut the lack of Asian buyers over the summer and the ongoing weakness in broad commodity markets will make it difficult for metal prices to rise in the month ahead and positive seasonal factors may not help either.

The gold price fell below the key $1,300 an ounce level on Tuesday and added to those losses after better-than-expected GDP growth was reported on Wednesday and rising wages were reported on Thursday.

The metal ended July with a loss of over two percent and, as shown below, has recently made a mockery of the regular seasonal patterns by moving opposite the norm over each of the last four months…

[To continue reading this article, please visit Seeking Alpha and to access precious
metals commentary that Tim only shares with subscribers, join Iacono Research.]

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Monday Morning Links

MUST READS
Investors cheer Portuguese bank rescue – Reuters
Banco Espirito Santo split in €4.9bn rescue plan – Telegraph
Banco Espirito Santo Junior Bonds Slide as Bailout Forces Losses – Bloomberg
Russian Fighter Jet Chased US Spy Plane Into Sweden One Day After MH17 Crash – IBT
Iraq conflict: ISIS fighters seize Mosul Dam, oilfield and 3 towns – CBC News
How Fracking Blows Up Balance Sheets of Oil and Gas Companies – WolfStreet
Recession Generation: How Millennials Are Changing Money Management Forever – Forbes
The terrifying possibilities that have Elon Musk worried about artificial intelligence – Quartz
The diverse universe of ‘folks’, according to President Obama – Washington Post
Watch out for the corporate debt bomb – MarketWatch
‘Flash Boys’ and the Speed of Lies – Bloomberg
Welcome to the New Dark Age – The Burning Platform
A Hint of Advance Warning – Hussman Funds

MARKETS/INVESTING
Stock futures up as investors look to claw back ground – MarketWatch
Far from 10% correction, investor pain mounts – USA Today
A Closer Look: Commodities – Alhambra Partners
China’s Stocks Rise to Eight-Month High as Chalco Rallies – Businessweek
The next crisis? We’re hardwiring short-termism into the financial system – Telegraph
Treasuries Little Changed as Investors Consider Fed Exit Plans – Bloomberg
Gold steadies near $1,295/oz as rate hike talk recedes – Reuters
Why Did Ron Paul Say Gold Could Go To Infinity? – Forbes
False Breakdowns And Breakouts Suggest Indecision – GoldSilverWorlds
India gold jewellery imports surge 10% in Q1, gold bar imports slip 3% – Mineweb
Gold price risk is still to downside – Mining.com

ECONOMY/WORLD/HOUSING/BANKING
USA’s love affair with debt is a problem – USA Today
US Economy Rebounds—with More Upside Likely – PragCap
Jobs And GDP Reports Reveal Keynesians’ Cluelessness – Forbes
Booming African Lion Economies Gear Up to Emulate Asians – Bloomberg
Top One Percent Has One Third of China’s Wealth, Research Shows – Caixin Online
Hong Kong has the opposite problem to China’s: too many women – Quartz
‘Premature’ to relax property cooling measures now – Channel News Asia
UK house-building PMI grows at fastest rate since 2003 – Economic Times
A Look At The Housing Market Eight Years After The Collapse – Forbes
Test Approaches for Yellen’s Nerves and Judgment – WSJ
Central bank meetings to set stage for parting of ways – Reuters
Why macro stabilization policy rarely fixes problems – Money Illusion

 
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