“To learn who rules over you, simply find out who you’re not allowed to criticize.” ~ Voltaire
‘Madoff taught us something, you can make promises for a long time as long as you don’t have to keep them.’ ~ Kyle Bass
Research:
Stock market predicts election outcome, while inflation and unemployment have no predictive value, says study ~ Socionomics
Intraday seasonals in equities ~ zerohedge
US
Junk-Bond Buyers Overreaching, BofA Says, with junk bonds 20 bps above record low average of 6.7% ~ Bloomberg $JNK #operationnewbubble
U.S. businesses brace for health care cost increase, report says ~ Politico
Health Law Likely to Spur Retail, Restaurant Cuts ~ WSJ
Manhattan studios up 15.4% to $2395, but inflation is allegedly only 1.7%
CBO says guv workers earn 16% more than same jobs in the private sector ~ Heritage – understated: see research by USA Today, Heritage, AEI
Russia:
Comparison between Putin’s Russia and Nazi Germany; neighbors watch nervously ~ Socionomics
- The U.S. State Department’s sees: intolerance of ethnic minorities, captured legislature, coerced judicial system, and media restrictions
- Critics call Russia youth campers “Putinjugend,” or “Putin Youth,” derived from “Hitlerjugend,” which is German for “Hitler Youth.”
- Similar to Germany’s rapid military expansion during the 1930s, Russia’s military budget has quadrupled under Putin.
- Poll:72% of Russians view Putin and Medveded favorably ~ Pew – his available political capital is more like carte blanche; he could do a lot of damage before popularity is a problem. Still, this may have peaked.
World:
"I wish I could find a way to sell Harvard short," says Jim Rogers, who also sees hospitals and museums going bust ~ thetakeaway
Marc Faber interview, about 20 mins ~ Marc Faber Blog – favors European and US equities, negative on real economy
Chart from BoE showing gulf between official rates and those people pay ~ @EdConway – a positive for banks $XLF
China:
More on China’s CDO equivalents ~ The Globe and Mail
Chinese banks’ Weapons of Mass Ponzi – Golden Elephant’s 7.5% guaranteed returns ~ FT
A Map of Conflicts in the South and East China Seas ~ Foreign Affairs
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