A global media aggregator of social, political, economic and market insight.
 

Twenty years later G. Edward Griffin is still taking on the Creature from Jekyll Island

EDITORIAL G. Edward Griffin must be one of the most feared and hated men on the Federal Reserve’s list of enemies. His expose of the quasi-federal agency was a best-seller from the    Continue reading »

Mario Draghi and the ECB embark on Quantitative Easing – because it worked so well for the U.S. and Japan

Mario Draghi, President of the European Central Bank, announced the ECB would buy $60 billion Euros worth of sovereign bonds each month, beginning in March and continuing until at least September 2016.    Continue reading »

Whitmer of Elliott Wave International the only analyst who saw the Swiss Franc unpegging coming

On Thursday, the Swiss National Bank removed its peg from the Euro. The Franc immediately lost nearly 30% as currency traders all over the globe scrambled to make sense of the surprise    Continue reading »

The State of the U.S. Markets Online Conference
free attendance to EWI’s online event

An Invitation Oil has been making headlines for weeks, and many pundits have rushed to explain, in retrospect, its stunning decline in price and how it impacts other markets, including U.S. stocks.    Continue reading »

Greek banks request financial help as systemic banks try to repel runs

When depositors lose confidence in a banking system they will pull their money out the system to find a safer place for it. That is called a run on the bank. Because    Continue reading »

How to Tame the Volatile Financial Markets
a report from Elliott Wave International

No matter how volatile the market, a FREE report shows you five ways the Elliott Wave Principle can improve your trading By Elliott Wave International Up, down, up, down; 200 points higher, 300 points    Continue reading »

Let’s be Franc – the Swiss Central Bank just went postal on the world

EDITORIAL Two years ago, at the height of the price of gold, the Swiss National Bank (SNB), Switzerland’s central bank, decided that it was necessary to cap the Swiss Franc exchange rate    Continue reading »

Canadian housing market is being sucked into the deflationary vortex

Calgary housing prices have fallen below 2012 levels, falling oil prices are being blamed for the decline.    Continue reading »

Recognizing changing social mood is key to understanding why the herd is causing the stock market to fall

EDITORIAL You have often heard me say that it is “endogenous social mood”, i.e., the subconscious mood of the collective herd that moves markets. It’s not news or current events as so    Continue reading »

Anatomy of a bubble – How the Federal Reserve and the U.S. Congress have created a debt crisis of historic proportion

To understand where the stock market is going we first need to understand from where it has come. Let’s start by comparing the currently in vogue macro economic philosophy, Keynesianism, to a    Continue reading »

Inflation vs. Deflation – Part 1
Which one is controlling the fate of America and will it cause the next Great Depression?

By Sannleikur Komist Question: “Most people who believe that we will slip into a depression seem to think it will be caused by inflation brought on by the collapsing of the dollar. Why    Continue reading »

Dow Jones Industrial Average
Baseline Elliott Wave Count from 1964 to 2014

With every great inflation comes an inevitable deflationary correction, economic yin and yang. Elliott Wave Theory is telling us that the point of deflationary reversal has arrived or will very soon. In    Continue reading »

The Creature from Jekyll Island
The End of the Federal Reserve System – Part 1

By Sannleikur Komist Editor I’m going to tell you a story – a story of corruption, deceit, greed and political intrigue. As it turns out, a true story, one stranger than fiction    Continue reading »

 

What’s Bigger Than a $1.4 Billion Mortgage Ratings Scandal?

The great “inflated” expectations for gold, oil, commodities — and now stocks

By Elliott Wave International

Get insights on the economy and investing for 2015 and beyond.

Last chance to join our free, online State of the U.S. Markets Conference.

On January 21, one of the biggest financial lawsuits in recent history came to a costly end. The accused, ratings behemoth Standard & Poor’s, agreed to a $1.4 billion settlement for “inflating credit ratings on toxic assets,” thus accelerating and exacerbating the 2008 subprime mortgage crisis.

Dow Jones Industrial Average
Elliott Wave update for week ending 1/23/2015

Dow Jones Industrial Average

Click here to see wave degree labeling key (popups required) -- Click on chart for larger image.


By Sannleikur Komist

Last week’s alternate count was apparently the correct count as the Dow Jones Industrial Average squeaked higher on the week, completing an almost three week long upward flat correction and setting the stage for the next leg down which should begin early this coming week.

S&P 500 Index
Elliott Wave update for week ending 1/23/2015

S&P 500 Index Click here to see wave degree labeling key (popups required) -- Click on chart for larger image.


By Sannleikur Komist

The S&P 500 Index looks to be in step with the Dow, completing an upward flat correction and setting the stage for a new downward trend to begin early this coming week. Like the Dow, the S&P’s a-b-c flat took three weeks to complete amid a roller coaster ride for market participants. But the riders haven’t seen anything yet. The coming week could possibly provide the most exciting, stomach churning movement so far in the new 2015 year.

Twenty years later G. Edward Griffin is still taking on the Creature from Jekyll Island

The Creature of Jekyll Island

EDITORIAL
By Sannleikur Komist

G. Edward Griffin must be one of the most feared and hated men on the Federal Reserve’s list of enemies. His expose of the quasi-federal agency was a best-seller from the day it was published in 1994, and he has become a popular speaker among anti-Federal Reserve circles.

Mario Draghi and the ECB embark on Quantitative Easing – because it worked so well for the U.S. and Japan

Draghi whatever it takes
Dateline: Frankfurt, Germany, 1/22/2015
Media Outlet: Reuters
Article Headline: ECB agrees landmark sovereign bond-buy plan
Map View:

Mario Draghi, President of the European Central Bank, announced the ECB would buy $60 billion Euros worth of sovereign bonds each month, beginning in March and continuing until at least September 2016. Europe has been in an economic slump since the financial crisis in 2008. Half of the European economies are in deflation and the quantitative easing purchases are an attempt to bolster sagging economic conditions in the European Union.

U.S. Dollar Index
Elliott Wave update for week ending 1/16/2015

U.S. Dollar Index

Click here to see wave degree labeling key (popups required) -- Click on chart for larger image.


By Sannleikur Komist

The U.S. Dollar Index is stretched and approaching the point where it will take a rest for a while. Dollar bulls are at an extreme which is a pretty good contrary indication that the juggernaut rally since May of last year is on its last legs.

Whitmer of Elliott Wave International the only analyst who saw the Swiss Franc unpegging coming

Brian Whitmer, EWI

On Thursday, the Swiss National Bank removed its peg from the Euro. The Franc immediately lost nearly 30% as currency traders all over the globe scrambled to make sense of the surprise move by Switzerland’s central bank. Headlines in financial magazines all over the world called the move a “shocker”.  According to a Bloomberg article,

“Not one of 22 economists surveyed by Bloomberg News between Jan. 9 and Jan. 14 expected the SNB to get rid of its cap in 2015.”

Dow Jones Industrial Average
Elliott Wave update for week ending 1/16/2015

Dow Jones Industrial Average

Click here to see wave degree labeling key (popups required) -- Click on chart for larger image.


By Sannleikur Komist

The Dow Jones Industrial Average struggled this week along with the S&P 500 and the rest of the markets. Deflationary forces have drawn it lower and the coming week should prove to be just as difficult for the venerable Blue Chips. Volatility should pick up during the week as global economic pressures start to be felt in the United States.

S&P 500 Index
Elliott Wave update for week ending 1/16/2015

S&P 500 Index

Click here to see wave degree labeling key (popups required) -- Click on chart for larger image.


By Sannleikur Komist

The stock markets have finally begun to join the rest of the global assets which have already been sucked into the deflationary vortex. The last few weeks have seen the S&P 500 Index putting up a mighty resistance, but a losing one. It will continue to struggle this coming week.

The State of the U.S. Markets Online Conference
free attendance to EWI’s online event

down market
By Sannleikur Komist
An Invitation

Oil has been making headlines for weeks, and many pundits have rushed to explain, in retrospect, its stunning decline in price and how it impacts other markets, including U.S. stocks.

On Jan. 12, USA Today interviewed Saudi billionaire businessman Prince Alwaleed bin Talal. His very first comment was:

“Saudi Arabia and all of the countries were caught off guardNo one anticipated it was going to happen. Anyone who says they anticipated this 50% drop (in price) is not saying the truth.” [Emphasis added.]

Only problem is, someone not only anticipated it; they put it in writing.

Greek banks request financial help as systemic banks try to repel runs

greek bank collaspe
Dateline: Athens, Greece, 1/16/2015
Media Outlet: ekathimerini.com
Article Headline: Greek banks make requests for ELA funding
Map View:

When depositors lose confidence in a banking system they will pull their money out the system to find a safer place for it. That is called a run on the bank. Because modern banks practice fractional-reserve banking, most banks typically only have enough cash available to pay back 8-10 percent of their deposits, which means the bank is out of business if more than 10% of depositors try to withdraw their money at the same time.

How to Tame the Volatile Financial Markets
a report from Elliott Wave International

liontamer

No matter how volatile the market, a FREE report shows you five ways the Elliott Wave Principle can improve your trading

By Elliott Wave International

Up, down, up, down; 200 points higher, 300 points lower; rinse and repeat! It isn’t easy being an investor in the U.S stock market these days. It feels like being in a clinical trial for mood stabilizers. Or, as the market oracle himself Warren Buffett described it in December 2014:

Mr. Market is kind of a drunken psycho. Some days he gets very enthused. Some days he gets very depressed. And when he gets really enthused… you sell to him, and if he gets depressed, you buy from him. There’s no moral taint attached to that.”

Let’s be Franc – the Swiss Central Bank just went postal on the world

swiss franc

EDITORIAL
By Sannleikur Komist

Two years ago, at the height of the price of gold, the Swiss National Bank (SNB), Switzerland’s central bank, decided that it was necessary to cap the Swiss Franc exchange rate at 1.20 Euro to protect itself against what it described as “an extremely high level of uncertainty on the financial markets.” It also instituted a negative interest rate policy on sight deposit accounts setting the rate at -0.25%. Negative interest rates mean depositors pay to save their money rather than receive interest on their deposits.

Moments ago, the SNB discontinued the minimum exchange rate and lowered their deposit rate even further, to -0.75 percent. The move has surprised everyone, and I mean everyone. Nobody saw this coming. 

Canadian housing market is being sucked into the deflationary vortex

falling house prices
Dateline: Calgary, Canada, 1/14/2015
Media Outlet: Bloomberg News
Article Headline: Calgary Home Prices Drop Most in Almost 2 Years on Oil Fall
Map View:

Calgary housing prices have fallen below 2012 levels, falling oil prices are being blamed for the decline.

The Crisis in Ukraine: What’s Next?
a report from Elliott Wave International

By Elliott Wave International

Editor’s Note:

EWI posted this report last March. I re-post it today as an example that the stock market can predict more than the price of stocks and bonds, it can predict social action. In fact, that is primarily what it is reflecting as stocks are the single best real-time indicator of social mood available.

Sannleikur Komist


Social mood is another term for the shared inclination of a society. The conflict between Russia and Ukraine is a dramatic example of social mood in action as this report from EWI demonstrates.

For 3 years, Russia’s stock market has been drifting lower. Here is why that’s important.

The stock market shows the mood of society.

And social mood drives social actions — like public protests and even war.

That means that if you follow the stock market, you’ll know what kinds of events are likely to happen in any country.