Archive for July, 2019

Know the Playbook to Wall Street’s Wait-and-See Game

0 | By Shah Gilani

Generally, I want you to get your Capital Wave Forecast on Monday mornings, the earlier the better.

But I waited out yesterday to see how the market would “set-up” ahead of the Fed meeting starting today and their eventual rate announcement and “future guidance” musings.

I’d like to wait until after 9:30 this morning to see what the personal and consumer spending figures will be and how the futures react to those data points. However, by the time those numbers drop, and I can get the Forecast ready for you that will be later than I’d like.

So, your Forecast is coming to you with some caveats…

How Europe’s Economic Problems Will Affect the U.S. Dollar

2 | By Wall Street Insights and Indictments Staff

On national television this morning, I shared what you already knew almost two weeks ago: The European economy is in big, and I mean real big, trouble. Over the past few weeks, I’ve laid out exactly how bad the economy in Europe is getting here, especially with how the European Central Bank is in dire circumstances dealing with the big scandals of Deutsche Bank, which you can read again here. Now see for yourself here how America will profit from Europe that made even Nigel Farage, the leader of the Brexit Party, chuckle… Click here to watch.

Everyone with a Mortgage Should Expect More Government Greed and Insanity to Come

1 | By Shah Gilani

If you believe the definition of insanity, according to Albert Einstein it’s doing the same thing over and over and expecting different results, then you know the U.S. government is insane the way they let Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac run the mortgage market.

But you may not know the same GSE insanity that caused the 2008 financial crisis and the Great Recession turned into a government slush fund and that greed is making both politicians and the mortgage market even more insane.

Here’s what you don’t know really happened with Fannie and Freddie, how their insolvencies turned into a government bonanza, and how the mortgage market is more insane than ever

This Presidential Candidate’s Plan to Save the U.S. Economy is Scary

3 | By Shah Gilani

Not surprisingly, Elizabeth Warren, Democrat senator from Massachusetts and ranting politician with a knack for blowing smoke up everyone’s backsides, is promising she knows about “The Coming Economic Crash and How to Stop It.”

I’ve recently covered Warren’s actions on her antitrust attack on big tech. Read on here what I see this leadership will bring to investors, and it’s not good.

That’s because she predicted the last economic crash, she says. And, she sees into the future.

While her history of predictions is what it is – revisionist history – she only ever made general statements about the economy and housing as far back as 2003, 2004, and 2005, years before the real bubbles were inflating. Then she got on the bandwagon as the bubble became main street news, this time she’s sure another crash is coming.

Talk about fear mongering. Is that all she’s got to offer America?

No, that’s not all.

She’s also telling us how to stop the next crash.

Here’s what Senator Warren is warning about, how she’d prevent it, and why her cure is a million times worse than any economic illness that may temporarily give the economy hiccups

Capital Wave Forecast: Market Analysts Know the Price of Everything and the Value of Nothing

0 | By Shah Gilani

It’s more than likely going to be another week of sloppy trading.

Besides being an extension of last week when the Dow Jones Industrials rose gently on Monday, flat lined on Tuesday, dipped Wednesday, rallied Thursday, and ended Friday drooping into the close, there’s nothing monumental right in front of markets right now.

A rate cut at the end of the month is a foregone conclusion.

Thank you, Federal Reserve, for your cheerleading.

It’s going to be a quarter point, not a half point as some overzealous analysts were touting.

We know that fact of a rate cut percentage because the Fed sent up the smoke signals telling us that, just so no one got overzealous (you listening analysts?) and bid up stocks higher than the Fed expects them to be at this juncture

The Real Reason Facebook’s Libra Won’t Get Off the Ground

0 | By Shah Gilani

This won’t take long.

That’s because the real reason Facebook’s Libra, Mark Zuckerberg’s would-be world dominating cryptocurrency, won’t get off the ground isn’t because of what any of its detractors are saying about it.

And, they sure are hammering it from every angle.

The real reason Libra will never be what it could be is that it could replace central banks’ lucrative fiat currency, fractional reserve magic money grand scheme.

Here’s what everyone’s saying and the real reason Libra is being killed in its cradle…..

A Massive Bank Bailout Could Soon Strike Global Markets Again

2 | By Shah Gilani

The beginning of the newly restructured Deutsche Bank may end up like every other iteration of the old struggling Deutsche Bank.

That’s because the giant German lender and would-be Master of the Universe, sometimes known simply as DB, who just announced 18,000 more layoffs as it downsizes, again, may be charged criminally for its involvement in the global 1MDB scandal.

Depending on what charges the U.S. Justice Department may file, and how big a fine Deutsche Bank may have to pay, the European Central Bank (ECB) may have to lend DB more money to not end up where it really belongs, in the history books.

With the biggest number of bank layoffs since the bankruptcy of Lehman, and a 10-year $17 billion tab in fines for regulatory failures and technically criminal activity, DB’s woes are anything but over.

But there’s more

Capital Wave Forecast: Go with the Flow on Rising Global Capital

0 | By Shah Gilani

The forecast this week for equities, and bonds for that matter, is partly to mostly sunny with occasional earnings misses and “talked-down” forward guidance casting the only clouds on the landscape.

The Fed advertising their intent to backstop markets by cutting rates is by now old news.

It’s almost a stated guarantee that we’ll see a quarter point cut out of the July 30-31 meeting minutes.

Then there’s the prospect of a September cut. Fed Funds futures are pointing to that as more than likely.

Not a bad background from which to paint a rosy picture.

But there’s more…

What the Failure of Deutsche Bank Says About Central Banks

1 | By Shah Gilani

No, Deutsche Bank, Germany’s largest bank, hasn’t failed, as in going out of business and being shut down.

But it has failed in every other sense of the word.

What happened to Deutsche Bank is a warning.

It’s not a warning for how greedy bankers blow themselves up, though it is about that.

It’s not a warning against how easily compliance can be circumvented, though it is about that.

It’s not a warning of what one giant bank’s “failures” can do to banking across a country or Union, though it is about that.

Ultimately, Deutsche Bank’s failures are a warning about how central banks cover up failure and how dangerous they are