Article Digest - May 9, 2013

China Could Learn from Us as it Heads for Massive Debt Crisis

Yesterday, I hopped into a taxi and the driver was a polite young man from Shanghai.  We got chatting and I asked him why he was here.  He laughed and stated bluntly: “China is over.” His friends back home were up to their gills in debt and the prices of their apartments – which they had paid small fortunes for – were falling.  Does this all sound familiar? Read More…


A Great Time for “Value” Investing

The S&P 500 (SPX) has continued to drift higher over the past couple sessions, as expected on Monday.  Now that the market has broken out to decisive new highs, there’s nothing in the way of horizontal resistance for the market to struggle with, there’s simply channel resistance and Fibonacci zones.  Read More…


 The Most-Hated Rally of All Time

Some say this is the most-hated rally of all time, others say that John Q Public hasn’t even bought into it yet, while still others believe the Bernanke call — not to be confused with the Greenspan put — is delivering a dish that is best served cold, with painful memories of 2008 providing the spice. Read More…


White Swans, Pink Flamingos

“The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed, the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribble of a few years back…soon or late, it is ideas, not vested interests, which are dangerous for good or evil.”   –John Maynard Keynes – Read More…