Chinese markets finally opened today after two days of holidays. The time off couldn’t have come at a worse time, given the deteriorating situation at Evergrande. News came out that the property developer missed two debt payments on Monday, sparking even more concern that this could be China’s “Lehman Brothers Moment.”
When a company goes under, the real question is how interconnected it is to other companies, particularly banks. Should a bank end up going under or needing a bailout thanks to the collapse of Evergrande, it’s possible that the fear in the markets of the past few days will continue. Eventually, China will likely step in at some point, but it’s a question of how far things will go first. Continue to expect volatility, with some bigger intraday swings in the market as well.
Now here’s the rest of the news:
Tax Increases Alone Can’t Pay for the Democrats’ Reconciliation Bill –Travis Nix,AIER
This $3.5 trillion spending spree is too large to be funded through tax increases. That means finance via deficit spending, which will boost already soaring inflation rates… [Read Here]
Now That the American Dream Is Reserved for the Wealthy, The Smart Crowd Is Opting Out –Charles Hugh Smith,Of Two Minds
The labor shortage, explained: Our economy now only works for the top 10%; the American Dream of turning labor into capital is now reserved for the already-wealthy… [Read Here]
September 22, 2020
Nothing ever moves up or down in a straight line… but it can often feel that way. February’s market selloff into March was steep and scary, but there were some rallies in there. And the March-September rally had a few down days as well.
In the current selloff that started this month, we’ve seen some large rallies already. And stocks are still near all-time highs. On a short-term basis, the past few days has moved shares toward being oversold in the short term, as evidenced by a number of traders starting to show interest yet again.
Now here’s the rest of the news:
Science Doesn’t Lie My jaw dropped yesterday, when I heard key government policymakers on television confidently proclaim we’re in the midst of a V-shaped recovery and the coronavirus is contained. This rah-rah cheerleading is destined to end in tears, because it’s divorced from reality.
I’m an optimist by nature and I certainly want the pandemic to go away. However, I don’t embrace delusions and neither should you. The coronavirus outbreak is impervious to positive spin and continues to batter the economy and corporate operating results. The latest empirical data from Johns Hopkins (as of Tuesday) indicate that the pandemic is resurgent. Politicians lie, but science doesn’t.
September 22, 2019
Gold Is NOT the Best Bet in Precious Metals
By Dr. Steve Sjuggerud
Bronze… Silver… Gold…
You already know the next metal in the sequence. Just about everyone does.
It’s platinum — the king of precious metals.
Sure, American Express has the Gold Card. But you know what card is above it — the Platinum Card.
Platinum is universally known for being above gold… It’s the ultimate award level. It’s how you know you’re getting the best of the best.
But it‘s more than a marketing shtick. Today, it’s an investment opportunity in the making…
Only the shiniest of objects catches my attention! 🙂