Tent Cities Full Of Homeless People Are Booming In Cities All Over America As Poverty Spikes

Just like during the last economic crisis, homeless encampments are popping up all over the nation as poverty grows at a very alarming rate. According to the Department of Housing and Urban Development, more than half a million people are homeless in America right now, but that figure is increasing by the day. And it isn’t just adults that we are talking about. It has been reported that that the number of homeless children in this country has risen by 60 percent since the last recession, and Poverty USA says that a total of 1.6 million children slept either in a homeless shelter or in some other form of emergency housing at some point last year. Yes, the stock market may have been experiencing a temporary boom for the last couple of years, but for those on the low end of the economic scale things have just continued to deteriorate.
Tonight, countless numbers of homeless people will try to make it through another chilly night in large tent cities that have been established in the heart of major cities such as Seattle, Washington, D. C. and St. Louis. Homelessness has gotten so bad in California that the L. A. City Council has formally asked Governor Jerry Brown to officially declare a state of emergency. And in Portland the city has extended their ‘homeless emergency’ for yet another year, and city officials are really struggling with how to deal with the booming tent cities that have sprung up…
There have always been homeless people in Portland, but last summer Michelle Cardinal noticed a change outside her office doors.
Almost overnight, it seemed, tents popped up in the park that runs like a green carpet past the offices of her national advertising business. She saw assaults, drug deals and prostitution. Every morning, she said, she cleaned human feces off the doorstep and picked up used needles.
‘It started in June and by July it was full-blown. The park was mobbed,’ she said. ‘We’ve got a problem here and the question is how we’re going to deal with it.’
But of course it isn’t just Portland that is experiencing this. The following list of major tent cities that have become so well-known and established that they have been given names comes from Wikipedia…

This post was published at The Economic Collapse Blog on September 11th, 2016.

11/9/16: BRIC PMIs: Composite Activity – August

In the previous post I promised to update Composite PMI indicators for BRIC economies, so here it comes.

The good news is that Russia and India are posting Composite readings that are statistically significantly above 50.0 for the second month in a row. For Russia, this is the third consecutive month of Composite PMI readings statistically above 50.0 and for India – second.
The bad news is that Brazil acts as big drag on BRIC growth with severely depressed Composite PMI reading for 18th month running. Worse, Brazil’s position has deteriorated in August compared to July.
Meanwhile, China posted virtually unchanged Composite PMI in August compared with July, with both readings being very close to signalling statistically significant expansion. Last time China posted statistically significant reading above 50 line was in August 2014.
Couple of charts to illustrate the trends:

This post was published at True Economics on September 12, 2016.

Is A VaR Shock Just Starting: Here Is The Checklist

Last Thursday, when the S&P was once again surging to within a fraction of taking out its all time high, we warned readers to “Brace For “VaR Shock” – How The Bank Of Japan May Be About To Unleash A Global Selloff.” Of particular interest was whether 10Y JGB yields would soar, now that the market was questioning the BOJ’s resolve to keep longer rates under control, leading to a risk-contagion scenario like the one seen in 2003, when Japanese bond yields exploded. We then said that “what that selloff – in a time of soaring cross-asset correlations, record quant leverage and virtually non-existent market liquidity – would mean for equities, we don’t know, – but thanks to Haruhiko “Peter Pan” Kuroda, we will soon find out.”

This post was published at Zero Hedge on Sep 11, 2016.

The Elephant In The Room: “What Else Could Go Right?”

The equity market question of the hour is ‘When will U. S. stock market volatility return?’
History tells us this is purely a question of ‘When and why’, not ‘if’. A look back to 1990 – the starting point of the modern CBOE VIX Index – shows that domestic stock market volatility goes through distinctly pendulum-like movements that takes years to develop. The daily VIX can run annual averages below 15, as it did from February 1993 – September 1996 (43 months), February 2005 – October 2007 (32 months), and August 2013 to July 2015 (23 months). Once the annual VIX average crosses 15 to the upside (as it did on July 13, 2015), it typically spends years above this level and can average 20 for much of that time.
So for all the chatter about low actual/projected volatility at the moment, that’s where we are now. The pendulum is swinging, albeit slowly, back to higher volatility. That explains the ‘When’: it is already happening. As for the ‘Why’… We’ll find out soon enough.
Fill in the blank:

This post was published at Zero Hedge on Sep 11, 2016.

Hillary Is Done

Hillary’s campaign ended today with the now-infamous all-on collapse that the spin doctors are now claiming was due to “pneumonia” she “was diagnosed with Friday.”
Yeah, sure it was.
But you know what? It doesn’t matter, really, whether that’s a lie or not.
Facts aside, optics matter in politics. The one place you cannot have a wipe-out of this sort is on the grounds of a terrorist attack 15 years ago, after saying the President must be “solid as a rock” in an attack on your opponent a few days earlier, then literally collapsing and having to be stuffed into a Vanbulance like a side of beef during a service to honor the dead.
The one thing the President must do is present the persona of Superman/woman. It’s never true, of course; a President can die like everyone else but that is what everyone wants to believe and buys in a Presidential election. There is no place the presentation of that persona matters more than on the ground where a bunch of muslim nutjobs murdered 3,000 people during a service to honor the dead and remember the events of the day 15 years ago.
To display your own mortality to the point that you’re unable to stand and appear to have lost consciousness on such a day, in such a place, is fatal to a candidate’s run for President.
The fact is that Hillary lost the election today, and it was lost irretrievably.

This post was published at Market-Ticker on 2016-09-11.

NHS chiefs warn that hospitals in England are on the brink of collapse

September 2016 – UNITED KINGDOM – The body that represents hospitals across England has issued a startling warning that the NHS is close to breaking point because of its escalating cash crisis. Years of underfunding have left the service facing such ‘impossible’ demands that without urgent extra investment in November’s autumn statement it will have to cut staff, bring in charges or introduce ‘draconian rationing’ of treatment – all options that will provoke public disquiet, it says.
In an unprecedentedly bleak assessment of the NHS’s own health, NHS Providers, which speaks for hospital trust chairs and chief executives, tells ministers that widespread breaches of performance targets, chronic understaffing and huge overspends by hospitals mean that it is heading back to the visible decline it last experienced in the 1990s. ‘Taken together this means the NHS is increasingly failing to do the job it wants to do and the public needs it to do, through no fault of its own,’ Chris Hopson, the chief executive of NHS Providers, writes in the Observer. His intervention comes days before the influential Commons health select committee decides whether to launch a special inquiry into the state of the NHS in England. After months dominated by the Brexit debate, the state of the NHS is now emerging as the key domestic challenge facing Theresa May’s government.

This post was published at UtopiatheCollapse on September 12, 2016.

Here’s How Europe Implodes, Part 1: Italian Junk Bonds And The End Of Austerity

The ‘whatever it takes’ economy is progressing nicely around the world, with governments and central banks doing things that no 20th century economist would have viewed as possible, let alone wise.
Now the question becomes, where does this process hit the wall first? Based on recent events, Europe is looking like the best bet. Consider the European Central Bank’s use of taxpayer money to buy not just junk bonds, but Italian junk bonds:
Draghi Buying Junk Bonds Shows ECB Will Do Whatever It Takes (Bloomberg) – Since a surprise interest-rate cut at his first meeting as European Central Bank President, Mario Draghi has shown a penchant for pushing the envelope. The bank’s entry into the corporate bond market on Wednesday was no exception: buying bonds with junk ratings. The second day didn’t disappoint either, with purchases of notes from troubled German carmaker Volkswagen AG.
By casting his net as wide as the program allows, Draghi ensured that the first day of corporate bond purchases made an impact. While the ECB has said it would buy bonds from companies with a single investment-grade rating, investors expected the central bank to start with the region’s highest-rated securities.

This post was published at DollarCollapse on SEPTEMBER 11, 2016.

Is This Widely Ignored Indicator Signaling Investor Complacency?

There has been a recent spike in the number of Unchanged Issues which has, at times, signaled too much investor complacency in the past.
As readers are aware, our biggest stock market concern in recent weeks has been focused on the widespread overly bullish sentiment. Today’s Chart Of The Day presents one further example of potentially too much complacency on the part of investors – at least prior to today’s market plunge. Perhaps the most disregarded yet widely disseminated market statistic is the number of Unchanged Issues on the exchanges on a given day. Everyone focuses (rightly so) on Advancers and Decliners, but mostly ignores the Unchanged Issues. We mostly did as well, until we began to chart them more closely a few years ago.

This post was published at Zero Hedge on Sep 11, 2016.

How a Single Word from the Fed Can Wipe Out Markets

The Committee to Destroy the World opened is hydra-headed mouth one too many times last week.
The result was the biggest drop in stocks since Brexit.
The Dow Jones Industrial average fell nearly 400 points or 2.1% on Friday while the S&P 500 dropped nearly 54 points or 2.5% and the Nasdaq Composite Index also shed 2.5% and nearly 134 points.
What was the monumental news that finally rattled investors?
Was it the latest nuclear test by North Korea, which experts now believe could have the ability to reach the U. S. mainland with nukes by 2020?
Was it the overt disrespect shown to President Obama by Chinese and Philippine leaders?
Was it weeks of lousy economic data?
Or the prospect of the most depressing presidential choice in generations?
Turns out it was nothing of the sort…

This post was published at Wall Street Examiner by Michael E. Lewitt ‘ September 11, 2016.

If Everything Is So Great, How Come I’m Not Doing So Great?

While the view might be great from the top of the wealth/income pyramid, it takes a special kind of self-serving myopia to ignore the reality that the bottom 95% are not doing so well.
We’re ceaselessly told/sold that the U. S. economy is doing phenomenally well in our current slow-growth world — generating record corporate profits, record highs in the S&P 500 stock index, and historically low unemployment (4.9% in July 2016).
While GDP growth is somewhat lackluster by historical standards – less than 2% in 2016 – it’s growth nonetheless. And the rate of consumer-price inflation is hovering around 1%; negligible by historical standards.
But this uniformly positive statistical view of the U. S. economy raises a question among those not in the top 0.1%: If everything’s going so great, how come I’m not?
Whether it’s struggling to keep up with the rising cost of living, a 0% return on savings, working longer hours while real wages stagnate, scrimping to pay back education loans, despairing at the abuses of power in our banking and political systems, or lamenting the loss of nourishing social interaction in our increasingly isolated and digital lifestyle – most “regular” people find their own personal experiences to be at odds with the rosy “Everything is awesome!” narrative trumpeted by our media.

This post was published at Charles Hugh Smith on SEPTEMBER 11, 2016.

Deutsche Warns Companies Will Sharply Cut 2017 Earnings Expectations Next

Yesterday, Deutsche Bank’s equity strategist David Bianco joined Goldman’s David Kostin in warning that Friday’s selloff was just the beginning, predicting that an “8-10% decline in the S&P looms” as a result of “manic” levels of PE relative to VIX, and various other indicators confirming just how stretched the market has become, coupled with unprecedented complacency and a record low VIX.

This post was published at Zero Hedge on Sep 11, 2016.

Road to Roota – Planned Financial Collapse to Likely Occur This Fall

The following video was published by TheDollarVigilante on Sep 11, 2016
Jeff interviews Bix Weir of Road To Roota, topics include: things turning out as predicted, electronic market manipulation, inevitable silver shortages, preparing for financial collapse, death watch for Deutche Bank, preserving wealth in a collapse, the internet off switch, EMP Internet and Bitcoin, G. A. T. A. and China, fighting the banksters and federal reserve system, Alan Greenspan and the basic computer language, early electronic trading, coming off the gold standard, engineered market crashes, money printing to crash the system, the federal reserve on Facebook, the 25 trillion dollar bailout that will not happen, the Jubilee and washing away debt, ending the current system, visions of a real free market society

The Devil’s Chessboard

The Devil’s Chessboard: Allen Dulles, the CIA, and the Rise of America’s Secret Government
A tremendous resource of breathtaking depth and clarity. Talbot builds on the now decades-old body of research – initiated by investigative reporters Tom Mangold (‘Cold Warrior’) and David Wise (‘Molehunt’), and largely developed by assassination researchers James DiEugenio and Lisa Pease (‘The Assassinations’) – and adds groundbreaking new information.

This post was published at Lew Rockwell on September 10, 2016.

Media Locked Out After Hillary Abruptly Calls It A Day, Heads Back To Chappaqua

While the press is scrambling to blame Hillary’s dramatic “medical episode” on New York’s balmy (and/or blamy) weather with the urgency of an economist who wants to accuse the “harsh weather” for the GDP forecast missing expectations by 2% or more, Hillary is hightailing it out. After Clinton abruptly left Sunday’s 9/11 anniversary ceremony in New York after feeling “overheated,” according to her campaign, and retreated to her daughter’s nearby apartment, she has decided to call it a day even after she exited Chelsea’s apartment shortly before noon, adding “I’m feeling great.” There may have been more to the official “narrative” since she had zero intention of sticking around.
Clinton spokesman Nick Merrill, quoted by AP, said in a statement that the Democratic presidential nominee attended the morning ceremony for 90 minutes before departing. Merrill said Clinton was “feeling much better,” but offered no additional details, including whether the 68-year-old Clinton required medical attention.
More surprising for a presidential candidate who is “feeling great”, Hillary’s campaign also did not take reporters in the motorcade after Clinton’s departure from her daughter’s apartment. An aide said the former secretary of state was heading to her home in Chappaqua, New York.

This post was published at Zero Hedge on Sep 11, 2016.

A Little Perspective and Market Notes

The opening segment of this week’s Notes From the Rabbit Hole (NFTRH 412) was intended to be a quick blurb but went on to become a five page exercise. It is shared publicly not so much because it is hard core analysis (which the rest of the report took care of), but because after a week like last week I think being a little wordy can be for the better.
I had a difficult week last week; a couple things had gone wrong and my schedule was just ridiculous. On Wednesday I was feeling pretty stressed out and wondering why I just can’t seem to catch a break. Then I looked up and saw a man with two hooks for hands walk by. It was almost as if he were sent into my view to straighten me out. screen-shot-2016-09-10-at-6-32-49-pm
Another source of perspective is a more obvious one. Today being September 11, I would venture that we all remember where we were and what we were doing on that day in 2001. I was working at my company. It was a normal morning and then it seemed like the world just stopped, except for the jet fighters that were putting a lock down to the sky above us. It seemed like the world then magically came together for a few days… fast forward to today’s divisive, sad and hateful political theater.
The stock market? A piece of cake, when you’ve got your head on straight. What I see after taking a look at sentiment, is that while we could get a bounce, something probably started on Friday and I don’t think it will be finished until it tests the 2100 area on the S&P 500 or possibly, the 200 day moving average (currently 2057).

This post was published at GoldSeek on 11 September 2016.