January 25, 2021

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Aa lot of crypto industry rags cheered the news that banks were given the regulatory go ahead to use stable coins and the blockchain as a transfer settlement layer. My suggestion is to be careful of what you wish for. The Office of the Comptroller of Currency (a regulatory arm of the US Treasury) released the following note: Federally Chartered Banks and Thrifts May Participate in Independent Node Verification Networks and Use Stablecoins for Payment Activities, as excerpted:

“While governments in other countries have built real-time payments systems, the United States has relied on our innovation sector to deliver real-time payments technologies. Some of those technologies are built and managed by bank consortia and some are based on independent node verification networks such as blockchains,” said Acting Comptroller of the Currency Brian P. Brooks. “The President’s Working Group on Financial Markets recently articulated a strong framework for ushering in an era o

Do You Really Want Big Banks Using Stablecoins and Blockchain in 2021? Be Careful What You Wish For

January 17, 2021

Exactly as I predicted, there is no V-shaped recover, U-shaped recovery, or any other representative letter of the alphabet. We are mired in structural downturn exacerbated by a cyclical downturn, popping of the everything bubble, and a horrible poor response to a global pandemic. There is no good news here!

 

First Week of 2021 Shows The US Employment Situation Sliding Back Down Rabbit Hole, Exactly As I Predicted

January 14, 2021

A couple of days ago, I tweeted...

ETH is More Valuable Than Bitcoin, But Let's Not Let the Facts Ruin A Good Headline

January 04, 2021

Tesla's data store allows it to do things that no other car manufacturer can accomplish at this time, and no amount of capital can enable them to catch up in the short to medium term. That's not to say that TSLA is not overvalued, but I think the pundits are mis-valuing Tesla more than overvaluing it. No company is worth 150 P/E, but the data store and gathering machine is by far its greatest asset and needs to be worked into the equation.

As a refresher, Tesla has well over 1 million data delivery drones, aka semi-autonomous cars fitted with (as quoted from the Tesla website):

  • Eight surround cameras providing 360 degrees of visibility around the car at up to 250 meters of range.
  • Twelve updated ultrasonic sensors complement this vision, allowing for detection of both hard and soft objects at nearly twice the distance of the prior system.
  • A forward-facing radar with enhanced processing provides additional data about the world on a redundant wavelength that is able to s

Investors and Analysts Don't Understand How To Value Tesla, While Others Don't Know What A Bubble Looks Like

January 04, 2021

                                                                                      

Introduction 

 

Citigroup Inc. (Citigroup or the Bank), the largest credit card issuer in the US, has reported Net Revenues of USD 17.3 billion and Net Profits of USD 2.2 billion during the turbulent 3rd quarter 2020 exceeding analysts' estimates. The Bank's profit fell 34% in the 3rd quarter due to weakness in its consumer banking division. The bank’s trading division once again offset a slump in profits driven by near-zero interest rates and reserve build-ups. Revenue fell 7% from the year-ago period as thriving trading desks fell short of offsetting a consumer banking slump. Increased loan-loss reserves led net income to tank 34% on Y-o-Y basis. The bank did set aside less money for potential bad loans in the latest quarter compared to earlier in the year, a sign that some of the

Citigroup Q3

November 30, 2020

                       

INTRODUCTION

 

As per the Q3 2020 earnings release by JPMorgan, it has exceeded Wall Street's Revenue and Profit forecasts by recording substantial gains in its Corporate and Investment Banking division. Also, the quarter’s main performance was largely driven by the equity capital markets business, which saw an uptick in IPO issuance driven by a strong equity backdrop with stocks trading at or near all-time highs. The Bank has earned USD 9.4 billion of Net Income during the 3rd quarter. During the period, the Bank has released USD 600 million reserves, primarily on runoff and home lending and changes in wholesale lo

JP Morgan Q3 Earnings Review

November 29, 2020

Not only are unemployment insurance claims rising again, but not a single media outlet has chimed in on the fact that after 6 months of so-called "economic recovery" (that doesn't really exist since claims are back on the rise), the claims number remained materially above any level that has every been recorded by the government pre-COVID lockdown - EVER!

Yes! That's how bad it is! The best of the Pandemic is still worse than it's ever been... until the start of the pandemic. And... The claims are rising again! Those of you who follow my YouTube channel shouldn't be surprised.

Why is No One Harping About What's Really Wrong With Last Week's Dismal Unemployment Claims Print?

November 19, 2020

Stagflation is a combination of numerous economic conditions: slow economic growth, high unemployment, and high levels of inflation, i.e. it describes an economy that is experiencing a simultaneous increase in inflation and stagnation of economic output. Lain Macleod first used the term stagflation in 1965 before that stagflation was long believed to be impossible by the economist.

The term is later used to describe the recessionary period in the 1970s following the oil crisis when the U.S. underwent a recession that saw five quarters of negative GDP growth. The U.S. inflation rate hit double digits in 1974; unemployment hit 9% by May 1975.

Stagflation is often caused by supply-side shocks which cause an unprecedented increase in costs or disruption to production. This results in a higher inflation rate and lower GDP. Stagflation may also occur with a decline in traditional industries leading to rising structural unemployment and lower output. 

The outbreak of COVID-19 led the historically strong job market of the U.S to a record level of unemployment. Imp

Reggie Middleton's U.S. Stagflation Analysis

November 18, 2020
Cron Job Starts