Juggling Dynamite

Another year, another repugnant ‘bank star’ convention in Davos, Switzerland full of all the same people who were saved by taxpayer bailouts in 2008 and have been undeservedly, grotesquely enriched from central bank liquidity injections ever since.  This morning’s interview with Blackstone chief Schartzman is classic of the prevailing sociopathic “let them in cake” mindset.

In an earlier segment of the conversation he predictably explains that he thinks the current market downturn is just a ‘correction’ and nothing to be too concerned about (even though most markets have already fallen more than 20% worldwide, double the 10% ‘correction’ category).  Nope as in 2000 and 2008, the party line with this crew remains, ‘stay long, stay calm, no need for anyone to sell any investment products to protect themselves from capital losses’. 

‘We need to keep your savings in harm’s way in order to keep raking in our fees’, is the subtext which none of the business media have the guts to call any of their ‘honorable’ guests out on.

Schartzman says the amount of anger in America today is remarkable and mystifying to him:  “how is that happening, why is that happening, what is the vein in Amercia that is being tapped into across parties that’s made people so unhappy?”

This obtuse elitism it precisely why revolutions repeat throughout human history in order to shake up the status quo.

Stephen Schwarzman, chief executive officer at Blackstone Group, talks with Bloomberg’s Erik Schatzker about the 2016 presidential race, Bernie Sanders, and Donald Trump.  Here is a direct video link.

As the old school obsesses about energy locked underground, southern Alberta (along with many other places in the world) quietly gets 333 days of sunshine a year. See also: Sunniest cities in Canada for more. The NDP government’s decision to move the province away from coal and reduce pollution, makes solar an obvious bright spot.

See Solar energy set to shine in greener Alberta:

In November, Alberta announced plans to phase out the use of coal-powered electricity generation by 2030, a daunting task in that more than half of Alberta’s electricity currently comes from coal.

The plan is to shift that burden onto natural gas and renewable sources of energy like wind and solar, something that could force the cost of electricity up, making personal solar power more attractive to Albertans.

“One of the real advantages to these types of systems is that once you pay for it there are no additional costs. So your price today is fixed and once that is done, even if electrical costs go up, your price to generate the power you are producing does not.”

Here is a direct video link.

Two of the best market analysts in one show this morning (both of whom head their own independent firms). No surprise they have been much better at seeing what’s happening in the world economy and markets than the mongrel hord of bank-paid-analysts that dominate business media.

Gary Shilling, president at A. Gary Shilling & Co., and Komal Sri-Kumar, president at Sri-Kumar Global Strategies, discuss slowing growth in China as the nation undergoes an economic transition. Here is a direct video link.

You can read a copy of Gary’s Special report “Chinese Sunset” this month via John Mauldin here. Worthwhile, great charts and more condensed than Gary’s usual monthly subscription-only reports.

Komal Sri-Kumar, president at Sri-Kumar Global Strategies, and Gary Shilling, president at A. Gary Shilling & Co., examine the damage done to the U.S. economy by the Federal Reserve’s interest rate increase and expectations for policy moves by the European Central Bank and Bank of England. Here is a direct video link.