Mish Shedlock Talks: Fed Decision, The Illinois Saga and US Industrial Production

By: Gordon Long & Mike Shedlock | Mon, Sep 21, 2015
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Special Guest: Mike ("Mish") Shedlock, Publisher of the Global Economic Analysis Blogspot.com. An espoused self educated Austrian Economist, Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Read more at http://globaleconomicanalysis.blogspot.com

20 Minute VIDEO

Bernanke/Yellen Cartoon

FOMC Decision - "Its All Actually Absurd!"

Mish had speculated that the Fed would likely hike 1/8th of a point at the critical September 17th FOMC meeting, but it turns out they didn't move at all. It appears that "The Fed is now going to delay so long that they may not even get in a rate hike!"

"Its all absurd to actually think that an 1/8 - 1/4 point hike is going to do anything other than perhaps put an end to the damage they have already done!"

"The Fed has blown this massive asset bubble and as soon as they hike and everything goes to h^&%ll, it isn't going to be because the Fed hiked, is is going to be because they didn't hike and encouraged and blew this asset bubble since March 2009!"


US Dollar Reacts & Near term Support Channel

US Dollar Index


US Industrial Production - Bloomberg Ridiculously Suggests it is the Northeast?

Mish is stunned to read that Bloomberg is suggesting that the rapidly falling US Industrial problem appears to be centered in the northeast after the Dallas Fed, Kansas City Fed, Richmond Fed and the Empire State Manufacturing Report all showed serious deterioration within their economic regions for various reasons.

Philadelphia Fed Current Conditions

Auto's will soon have a used car glut as 1/3 of all cars are now on leases of 3 years or less! With all these cars financed through ABS (Asset Back Securities) within the Shadow Banking System it reminiscent of the 2008 Financial Crisis when housing residuals fell below their MBS values.

Student and Auto Loan Debt


The Illinois Saga - Special Political "Carve Outs" Circumvent Constitutional Budget Issues

"This year the Illinois legislature didn't even attempt to base a balanced budget. It was $8B out of whack and sent it on to Governor Bruce Rauner who refused to sign it. Illinois without a budget can't constitutionally pay its bills. Last year (almost like they knew this was going to happen) the legislature passed a "carve out" for THEMSELVES. No matter what happened the legislators would get paid. Now there is no pressure on them to produce a budget because they get paid anyway." Illinois facing the short term budgetary isssue of not being able to pay the public schools additionally "carved out" an exemption for them to avoid the wrath of parents when kids couldn't return to school in September.

"We now have a stand off between the Governor and the Illinois legislators, but more and more bills are going unpaid. They recently stopped paying dentists and the next up are medical bills!"

....and much, much more, inlcuding a discussion o China in this fast paced 20 minute Video.

 


 

Gordon Long

Author: Gordon Long

Gordon T. Long
Publisher - LONGWave

Gordon T. Long

Gordon T. Long has been publically offering his financial and economic writing since 2010, following a career internationally in technology, senior management & investment finance. He brings a unique perspective to macroeconomic analysis because of his broad background, which is not typically found or available to the public.

Mr. Long was a senior group executive with IBM and Motorola for over 20 years. Earlier in his career he was involved in Sales, Marketing & Service of computing and network communications solutions across an extensive array of industries. He subsequently held senior positions, which included: VP & General Manager, Four Phase (Canada); Vice President Operations, Motorola (MISL - Canada); Vice President Engineering & Officer, Motorola (Codex - USA).

After a career with Fortune 500 corporations, he became a senior officer of Cambex, a highly successful high tech start-up and public company (Nasdaq: CBEX), where he spearheaded global expansion as Executive VP & General Manager.

In 1995, he founded the LCM Groupe in Paris, France to specialize in the rapidly emerging Internet Venture Capital and Private Equity industry. A focus in the technology research field of Chaos Theory and Mandelbrot Generators lead in the early 2000's to the development of advanced Technical Analysis and Market Analytics platforms. The LCM Groupe is a recognized source for the most advanced technical analysis techniques employed in market trading pattern recognition.

Mr. Long presently resides in Boston, Massachusetts, continuing the expansion of the LCM Groupe's International Private Equity opportunities in addition to their core financial market trading platforms expertise. GordonTLong.com is a wholly owned operating unit of the LCM Groupe.

Gordon T. Long is a graduate Engineer, University of Waterloo (Canada) in Thermodynamics-Fluid Mechanics (Aerodynamics). On graduation from an intensive 5 year specialized Co-operative Engineering program he pursued graduate business studies at the prestigious Ivy Business School, University of Western Ontario (Canada) on a Northern & Central Gas Corporation Scholarship. He was subsequently selected to attend advanced one year training with the IBM Corporation in New York prior to starting his career with IBM.

Gordon T Long is not a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. Of course, he recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and barring that, we encourage you confirm the facts on your own before making important investment commitments.

The information herein was obtained from sources which Mr. Long believes reliable, but he does not guarantee its accuracy. None of the information, advertisements, website links, or any opinions expressed constitutes a solicitation of the purchase or sale of any securities or commodities. Please note that Mr. Long may already have invested or may from time to time invest in securities that are recommended or otherwise covered on this website. Mr. Long does not intend to disclose the extent of any current holdings or future transactions with respect to any particular security. You should consider this possibility before investing in any security based upon statements and information contained in any report, post, comment or recommendation you receive from him.

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Mike Shedlock

Author: Mike Shedlock

Mike Shedlock / Mish
Mish Talk

Mike Shedlock

Michael "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Visit http://www.sitkapacific.com/ to learn more about wealth management for investors seeking strong performance with low volatility.

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