Friday, April 11, 2014
US and French Warships Have Entered Black Sea
Dr Faber is predicting a 1987-type stock market crash this year – only it will be worse.
He told CNBC that the pain in the internet and biotechnology sectors was just getting started, and the market was beginning to realise that US Federal Reserve was a "clueless organisation".
"I think it's very likely that we're seeing, in the next 12 months, an '87-type of crash," Dr Faber told CNBC. "And I suspect it will be even worse."
US technology stocks suffered their sharpest dive in more than two years overnight. Photo: AFP
Dr Faber's prediction comes after another high profile investor, Jeremy Grantham, said last month the ''next bust will be unlike any other''.
The US technology-heavy Nasdaq plummeted by 3.1 per cent on Thursday night (US time), its biggest one-day drop since November 2011. A sharp sell-off in biotechnology and momentum names, including Gilead Sciences and TripAdvisor weighed on the market, fuelling fears among inventors of a broader pullback.
"I think there are some groups of stocks that are highly vulnerable because they're in cuckoo land in terms of valuations," Dr Faber said.
"They have no earnings. They're valued at price-to-sales. And this is not a good metric in the long run."
Dr Faber, the editor of the Gloom, Boom & Doom Report, has already called for growth stocks to decline this year.
He said ridiculous stock valuations were not the crash catalysts, saying the Federal Reserve was also to blame.
After the Fed began to taper its massive bond buying program, minutes from its last meeting in March indicated that it may not be as eager to end its easy money policy.
"I believe that the market is slowly waking up to the fact that the Federal Reserve is a clueless organisation," Dr Faber said.
"They have no idea what they're doing. And so the confidence level of investors is diminishing, in my view.
"This year, for sure - maybe from a higher diving board - the S&P will drop 20 per cent," Dr Faber said, before correcting himself.
"I think, rather, 30 per cent. Who knows? But all I'm saying is that it's not a very good time, right now, to buy stocks."
CNBC noted that Dr Faber predicted in August last year a 1987-type crash was looming.
Since then the S&P 500 has risen about 9 per cent.
Mr Grantham said the bust would be particularly painful because "the Fed and other central banks around the world have taken on all this leverage that was out there and put it on their balance sheets.
"We have never had this before."
Mr Grantham – the cofounder and chief investment strategist at the $US112 billion ($119.18 billion) Boston-based fund manager GMO – said assets were overpriced generally.
''They will become cheap again. That's how we will pay for this. It's going to be very painful for investors,'' he said.
Read more: http://www.smh.com.au/business/markets/wall-street-crash-even-worse-than-1987-is-coming-says-marc-faber-20140411-36gok.html#ixzz2yamoZMbc
He told CNBC that the pain in the internet and biotechnology sectors was just getting started, and the market was beginning to realise that US Federal Reserve was a "clueless organisation".
"I think it's very likely that we're seeing, in the next 12 months, an '87-type of crash," Dr Faber told CNBC. "And I suspect it will be even worse."
US technology stocks suffered their sharpest dive in more than two years overnight. Photo: AFP
Dr Faber's prediction comes after another high profile investor, Jeremy Grantham, said last month the ''next bust will be unlike any other''.
The US technology-heavy Nasdaq plummeted by 3.1 per cent on Thursday night (US time), its biggest one-day drop since November 2011. A sharp sell-off in biotechnology and momentum names, including Gilead Sciences and TripAdvisor weighed on the market, fuelling fears among inventors of a broader pullback.
"I think there are some groups of stocks that are highly vulnerable because they're in cuckoo land in terms of valuations," Dr Faber said.
"They have no earnings. They're valued at price-to-sales. And this is not a good metric in the long run."
Dr Faber, the editor of the Gloom, Boom & Doom Report, has already called for growth stocks to decline this year.
He said ridiculous stock valuations were not the crash catalysts, saying the Federal Reserve was also to blame.
After the Fed began to taper its massive bond buying program, minutes from its last meeting in March indicated that it may not be as eager to end its easy money policy.
"I believe that the market is slowly waking up to the fact that the Federal Reserve is a clueless organisation," Dr Faber said.
"They have no idea what they're doing. And so the confidence level of investors is diminishing, in my view.
"This year, for sure - maybe from a higher diving board - the S&P will drop 20 per cent," Dr Faber said, before correcting himself.
"I think, rather, 30 per cent. Who knows? But all I'm saying is that it's not a very good time, right now, to buy stocks."
CNBC noted that Dr Faber predicted in August last year a 1987-type crash was looming.
Since then the S&P 500 has risen about 9 per cent.
Mr Grantham said the bust would be particularly painful because "the Fed and other central banks around the world have taken on all this leverage that was out there and put it on their balance sheets.
"We have never had this before."
Mr Grantham – the cofounder and chief investment strategist at the $US112 billion ($119.18 billion) Boston-based fund manager GMO – said assets were overpriced generally.
''They will become cheap again. That's how we will pay for this. It's going to be very painful for investors,'' he said.
Read more: http://www.smh.com.au/business/markets/wall-street-crash-even-worse-than-1987-is-coming-says-marc-faber-20140411-36gok.html#ixzz2yamoZMbc
BILL CLINTON: AN ALIEN INVASION MAY BE THE ONLY WAY TO UNITE THIS INCREASINGLY DIVIDED WORLD
They are setting the stage.........
Would contact with a race of aliens be enough to fully unite humanity? Would it cause all of us to drop our bitter quarrels and come together as one? That is apparently what former president Bill Clinton believes.
On Jimmy Kimmel Live the other night, Clinton said that an alien invasion “may be the only way to unite this increasingly divided world of ours”. He also said that “if we were visited someday, I wouldn’t be surprised”. So does he know something that the rest of us don’t? And why is he sharing this now? In recent years, the general public has been primed for the possibility of contact with aliens. There has been an endless barrage of books, movies, television shows and video games that portray human contact with extraterrestrials. It has gotten to the point where even some of the most hardcore skeptics in our society seem quite eager to embrace the possibility of extraterrestrial contact. Is this a good thing, or could the truth be that we are being set up for a great deception of historic proportions?
On Jimmy Kimmel Live the other night, Clinton said that an alien invasion “may be the only way to unite this increasingly divided world of ours”. He also said that “if we were visited someday, I wouldn’t be surprised”. So does he know something that the rest of us don’t? And why is he sharing this now? In recent years, the general public has been primed for the possibility of contact with aliens. There has been an endless barrage of books, movies, television shows and video games that portray human contact with extraterrestrials. It has gotten to the point where even some of the most hardcore skeptics in our society seem quite eager to embrace the possibility of extraterrestrial contact. Is this a good thing, or could the truth be that we are being set up for a great deception of historic proportions?
Appearances by major political figures on late night talk shows are usually highly scripted.
So it seemed odd that Jimmy Kimmel would ask Bill Clinton about UFOs. Is that something that Clinton actually wanted to talk about? When Kimmel asked his questions, Clinton seemed quite prepared with his answers. Among other things, he told Kimmel that “the differences among people of Earth would seem small” if we were to be suddenly confronted with contact by extraterrestrials…
So it seemed odd that Jimmy Kimmel would ask Bill Clinton about UFOs. Is that something that Clinton actually wanted to talk about? When Kimmel asked his questions, Clinton seemed quite prepared with his answers. Among other things, he told Kimmel that “the differences among people of Earth would seem small” if we were to be suddenly confronted with contact by extraterrestrials…
The former president said on “Jimmy Kimmel Live” Wednesday that an invasion by extraterrestrials might be the best way to unite the fractious countries of our war-wracked planet.
“It may be the only way to unite this increasingly divided world of ours … think about all the differences among people of Earth would seem small if we feel threatened by a space invader. That’s the whole theory of ‘Independence Day,’” he said, referring to the hit 1996 sci-fi disaster flick.
“Everybody gets together and makes nice.”
I have posted video of Bill Clinton telling Jimmy Kimmel these things below…
This is absolutely stunning.
Credit to altheadlines.com
US and French Warships Have Entered Black Sea
ANKARA, Turkey, April 11 (RIA Novosti) РThe US guided-missile destroyer Donald Cook and French intelligence warship Dupuy de L̫me have entered the Black Sea, the Turkish newspaper Sabah reported Friday.
According to the US military command, the dispatch of the Donald Cook destroyer was a move to reassure the country’s NATO allies in the region amid heightened tensions due to the crisis in Ukraine.
Turkish political scientist Fatih Er told RIA Novosti that the US ships are not intended to scare Russia or conduct any military operations against the country.
“I do not think that in practice the Americans have some specific goal in mind, sending warships to the Black Sea. The ships going through the Turkish straits are not so much of a message to Russia, but rather a move towards Europe,” Er said.
“The US showed they are backing their European partners. The message by the Secretary of State and European leaders is rhetorical. I expect the US to make a move against Syria,” he added.
The USS Donald Cook is the third US warship sent to the Black Sea recently. In February, the US dispatched the missile frigate USS Taylor into the waters of the sea to provide security for the Olympic Games in Sochi.
The vessel ran aground off the coast of Turkey, and as a result exceeded the time it was allowed to spend in the region under international agreements.
Last month, the USS Truxtun passed through the Bosphorus to enter the Black Sea to conduct joint exercises with Bulgaria and Romania.
According to the Montreux Convention on the status of the straits, warships of countries that do not have access to the Black Sea may remain no longer than 21 days in the sea.
Russian Foreign Minister Sergei Lavrov earlier said that the presence of US ships in the Black Sea has often exceeded the limit under the convention.
Credit to RIA Novosti
The US Consumer Is So Strong, Family Dollar Is Closing 370 Stores
First, they came for the upper middle-priced retailers when Macy's shut down 5 stores and fired 2500... and nobody said anything.
Then, they came for the middle-priced retailers when JCPenney announced it would shut down 33 stores and fire 2000... and nobody said anything.
Then, they came for the lower-priced retailers when Radioshack celebrated the one year anniversary of shutting down 500 stores by shutting down 500 more... and nobody said anything.
Today, as we plumb the depths of the US economic food-chain in that last bastion for the impoverished US consumer, dollar stores, we find that that staple for low-cost "everything" Family Dollar, which operates 8,100 stores around the country, will be shutting down 370 stores "as it tries to reverse sagging sales and earnings." It was not clear immediately how many thousands of workers would be affected by the store shuttering. We assume "many to quite many."
And what do they say? Why, that "the US economic recovery is obviously stronger than ever" of course!
The retail chain follows competitors in highlighting the split between shoppers who are enjoying an improving economy and those being left behind.Dollar General, the nation's largest dollar-store chain with 11,100 locations, offered a weak profit outlook last month after reporting weak fourth-quarter sales. And Dollar Tree, which operates about 5,000 locations, missed profit expectations for the holiday quarter in February.Family Dollar has stumbled even more than its rivals because it has made mistakes in pricing, merchandising and the locations of its stores, analysts say. Still, the industry's problems are a big departure from a few years ago, when Family Dollar and other chains packed in customers and expanded rapidly by catering to cash-strapped people during the Great Recession.But that expansion has spread shoppers thin. And retailing giant Wal-Mart is muscling in, too, by accelerating its growth in small stores, while increasing its offerings of small packages that are easy on the budget.
It wouldn't be a pathetic management team if it didn't scapegoat the weather instead of casting blame where it truly lies: an incompetent Federal Reserve that has done nothing for the recovery of the "non-1%" and sure enough:
Family Dollar Chairman and CEO Howard Levine told investors on a call that the poor weather led to numerous store closings, disruptions in merchandise deliveries and higher-than-expected utility and maintenance expenses.
Oh so, the reason revenue dropped 3.8% in the quarter was snow. So why did revenue drop 2.8% in the last quarter of 2013? Fear of imminent snow?
Levine did retain a tiny shred credibility when he added that "shoppers' financial constraints and a discount-driven holiday season also played a role." A rather massive one.
What other mistakes did management make?
Family Dollar had shifted away from its focus on $1 items and had offered too many temporary promotions, retail consultant Craig R. Johnson said. The company now says it wants to go back to focusing on everyday low prices and $1 items to restore confidence it offers a predictably good deal every time a shopper visits the store.
Yup: the US recovery is so strong, consumers can't even afford to spend $1 on groceries. And now buy stawks. The Fed demands it.
Finally, we are not being entirely fair. It is not every retailer that is getting crushed. Only those catering to the non 1% of course. "The retail chain follows competitors in highlighting the split between shoppers who are enjoying an improving economy and those being left behind." Indeed, as we first showed several months ago in "Shopping With Bernanke: Where QE Cash Ends Up Tells Us Who Benefited"...
"Recovery"
Credit to Zero Hedge
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