Salient to Investors: Tyler Durden writes: ZIRP has allowed insolvent US oil producers to stay in business and help keep oil prices low, and now Saudi Arabia and Qatar are also tapping the credit markets. Saudi Arabia needs crude at $100 to finance their budget deficit estimated to be 20%
READ MORE... →Salient to Investors: David Stockman writes: The S&P 500 has sliced through both the 50-day and 200-day moving averages. 2130 on the S&P 500 will prove to be a generational high. CAT, China, European luxury brands, the NASDAQ Biotech Index are shorts. Expect the Fed to announce they are well short of
READ MORE... →Salient to Investors: Fareed Zakaria said: The last time oil fell more than 50% in less than a year, in the 1980s, the Soviet Union collapsed. Saudi Arabia wants to put American shale and tight oil producers out of business, but they have survived using technology and smart business practices.
READ MORE... →Salient to Investors: David Stockman writes: The bull market is dead, yet stock option addicted corporate executives are buying their own drastically over-priced shares hand-over-fist. Corporate stock buybacks and dividends are back to late 2007 levels of all of net income, lured by 80 months of ZIRP and $3.5 trillion of debt monetization by
READ MORE... →Salient to Investors: Bill Gross at Janus Capital said: The global economy is dangerously close to deflationary growth. Any whiff of deflation and things tend to reverse and go badly. The CRB Commodity Index is lower than in 2008 when Lehman went bankrupt. Oil, metals and crops have plunged due to
READ MORE... →Salient to Investors: Cargill, the world’s largest grain trader, shut its commodities hedge fund last month, a sign that commodity speculators are in trouble. Donald Steinbrugge at Agecroft Partners said hedge funds are supposed to make money in both bull and bear markets but managers bias towards rising prices. Steinbrugge
READ MORE... →Salient to Investors: David Stockman writes: The central banks have shot their wad after increasing their aggregate balance sheet from $3 trillion to $22 trillion over the last 15 years, which falsified financial prices. The coming deflation will bring a plunge in corporate profits and collapsing prices of vastly inflated risk asset classes. The
READ MORE... →Salient to Investors: Michael Snyder writes: Global debt is at record highs, too big to fail banks have never been more reckless, and global financial markets have never been more primed for a collapse. Most people lack the patience to wait for long-term trends to play out so if the stock market is
READ MORE... →Salient to Investors: Tyler Durden writes: Jason Zweig at the Wall Street Journal recently described gold as “like a pet rock” and said owning gold was an act of faith. An article by Floyd Norris in The New York Times in 1999 slamming gold was followed by a 650% rise in the
READ MORE... →Salient to Investors: After decades of strong performance, coal producers are starting to fail faster than anyone expected. Walter Energy is filing for bankruptcy, Alpha Natural Resources was delisted from the NYSE due to its low share price. Arch Coal implemented a 1-for-10 reverse stock split to avoid delisting. Coal prices are
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