The Race Past the Bottom

April 21, 2016
UPDATE 1-Swedish central bank extends money printing, keeps rates below zero

While the economy has surged - growth was 4.1 percent in 2015 - the Riksbank has found itself in a race to the bottom on interest rates with its regional peers, notably the European Central Bank, which is expected to hold policy unchanged at a rate meeting later on Thursday.

When your benchmark rate is -0.50%, as is the case in Sweden, you are no longer racing to the logical bottom. You are racing well past it. The only other bottom is the illogical one, and that one can't be hit until negative infinity. Sigh.

Quote of the Day

April 20, 2016
CNBC: Young homebuyers cringe on credit scores

"With rents steadily rising and average fixed rates well below 4 percent, qualified first-time buyers should be more active participants than what they are right now," said Lawrence Yun, chief economist for the National Association of Realtors.

If you can't trust the chief economist for the National Association of Realtors to give you an accurate scoop on the housing market and tell you what you should be actively doing, then who can you trust?

I mean, really. There's never been a better time to own your own home.

1. Lock in that home equity before the next earthquake, tornado, hurricane, flood, and/or termite invasion strikes. What's the worst that could happen?

2. They just aren't making any more land (other than by building high-rise condominiums, doubling the land with each doubled floor).

3. Buy now or be priced out forever. In other words, buy now before the next economic downturn hits and the layoffs begin again. Do you know how hard it is to borrow money to buy a house while unemployed? I mean now, of course. I'm not talking 2005, when fogging a mirror was the only qualification needed.

Some might argue that many qualified first-time buyers should rent. Not me. Oh, sure. I did. I thought it would be better to concentrate on my career rather than the mowing and the weeding. That was just a crazy period in my life though. I moved from job to job as the layoffs appeared. Didn't want to be anchored to a house.

Today's younger workers don't have to concern themselves with that. When you are hired on by a large multinational corporation, you are their employee for life. I'm talking the ultimate in job security. No moving will ever be necessary. Just kick back, do the minimum necessary, and then enjoy that fat pension later in life. Plant yourself I say.

Uh, oh. Broke the sarcasm meter. I should have bought one made in the USA using hard-working American factory robots instead of buying a cheaper Chinese model using hard-working Chinese factory robots. My bad.

"25 Basis Points Doesn't Means Almost Nothing to Anyone"

April 13, 2016
JPMorgan CEO Jamie Dimon tells Yahoo Finance what he's seeing in the economy

"25 basis points doesn't means almost nothing to anyone," he said. "I'm hoping you see another rate raise or two because the economy is going strong."

You tell 'em Jamie. Obfuscate that lipstick on the pig!

April 19, 2016
Wall Street bankers facing pay cuts as profits fall

JPMorgan Chase, which announced earnings last week, reported a 5 percent reduction in overall pay and 14 percent cuts to compensation at its corporate and investment bank.

Strong economy. Best ever!

Kudos to Yahoo Finance for Uniting the United States

April 20, 2016
Yahoo Finance: A 12-year-old girl once stumped Warren Buffett with a rough question about Berkshire

She stood up and she said, ‘My dad told me that when he bought the Berkshire stock, it was going to go to my college education, and now it looks like I’m going to have to go to correspondence school,” said Buffett.

The trick to stumping Warren Buffett with a rough question is to not provide a question mark. Make it more of a statement. Works every time!

From the comments:

Good thing the title of this article is entirely screwed up. "A 12-year-old girl once stumped Warren Buffett with a rough question..." Where is the question? All we have is a statement about the performance of Berkshire stock. There is nothing challenging in the statement, and how is Buffet stumped by the comment? Seriously, who writes these articles? - Sugar

77 likes, 0 dislikes.

Apparently, this story stumped the writer. What kind of 'writer' has trouble distinguishing between a statement and a question? - Ben

45 likes, 0 dislikes.

Appears the writer went to correspondence school. - tater

40 likes, 0 dislikes.

And Yahoo can't figure out why they are heading down the toilet. - Reasonman

15 likes, 0 dislikes.

Have you ever seen such solidarity in an election year? How can so many Americans all agree on the same thing simultaneously? It brings tears to my eyes.

You won't see me mentioning Ammon Bundy, domestic terrorism, Donald Trump, racism, Hillary Clinton, or Goldman Sachs to spoil the mood. No, sir. Not going there.

Oops. ;)

The Easiest Way to Safely Earn 10.55% in Your Lifetime!

April 18, 2016
Treasuries Fall as BlackRock Expects Losses for Long-Dated Debt

Japanese debt rallied after an auction of five-year notes, with the yield on the nation’s 30-year securities dropping to an unprecedented 0.335 percent.

1.00335^30 = 1.1055

Assuming you will live another 30 years, I can't think of an easier way to guarantee a 10.55% return.

What? You wanted to earn it in just one year? Hahaha! Do I look like a miracle worker?

Strong global economy pushing yields into the stratosphere, baby. That's what I'm talking about, lol. Sigh.

Two Things Corporations Can Do with Eternally-Cheap Dollars!

April 15, 2016
Fed is Bluffing on Rate Hikes

So the market could still pull off that feat of new highs right into economic and earnings weakness -- especially since the giant corporate “BuyBack Machine” can still vacuum up shares with eternally-cheap dollars.

Vacuum up those shares with eternally-cheap dollars! Woohoo!

Hey! Do you know what else corporations can do with eternally-cheap dollars? Pay decent wages, of course! Hurray! Everybody wins!

April 12, 2016
American Apparel lays off hundreds of workers and considers outsourcing some manufacturing

The main problem is that it’s difficult to pay workers decent wages...

What? If dollars are as eternally-cheap as is claimed, then why aren't they being given out like candy to the workers of America? Makes no sense! Other than American Apparel's recent bankruptcy caused by excessive debt and lack of eternally-cheap dollars, what am I missing?

Eternally-cheap dollars my @$$. That's the kind of thing a used car dealer tells you to make a sale. Trade those eternally-cheap dollars for this eternally-cheap car! Can't lose!

No, seriously. This cheap car runs fine, on the level. And when I say on the level, I really mean don't take it on any hills. The brakes are shot and the engine can't take the strain, lol. Sigh.

The Crock of @#$% Report v.034

April 9, 2016
We are now witnessing Elon Musk’s slow-motion disruption of the global auto industry

If traditional automakers fear obsolescence, they aren’t showing it. “While we applaud and welcome any new competitors to market, BMW remains focused on delivering the most innovative, efficient and technologically advanced vehicles to our customers,” BMW spokeswoman Rebecca Kiehne told Quartz.

Yeah, I bet they applaud. Hahaha!!

The Grass Is Always Greener

April 9, 2016
Fortune: What You Can Do Every Day to Be More Successful

I want to expand my creative and my rational powers with the ability to mine the waves of data that will increasingly surround us — and only that can be done with an extra day in the week.

10,000 years from now, the universe will not care how successful you were. It will not care how much money you acquired or how many financial problems you solved. It will not care how many hours you worked in a cubicle, then an office, then a larger corner office with windows. Of this, I am quite certain.

Today, your dog will care about the success of taking a walk though. To each his own.


Click to enlarge.