Digging into some of the rules of “progressive capitalism,” with Cambridge University Chancellor Lord David Sainsbury. He discusses whether he expects pushback on the push for reform. Here is a direct video link.
Pope Francis has also recently targeted capitalism in his new papal proclamation, calling unfettered capitalism the “new tyranny.” Here is a direct video link.
David Rosenberg turned bullish in the past year as his firm searches for a buyer now that assets under admin have recovered from their 2008 losses (also see: David Rosenberg turns bullish, earns $3.1m). Hugh Hendry capitulated last week and said he had caved to business model pressure (unhappy clients) and bought back into equities. Each day of higher and higher stock prices are having the usual impact in coercing mass psychology to the bullish “this time is different” belief. With investor sentiment surveys registering cycle highs of 55% bulls and only 15% bears, there are very few left today that are willing to offer a sober view. For those still open to considering thoughts other than the “Central Banks are in so stocks can only go higher”, former OMB director David Stockman offers an excellent summary of relevant facts in this clip.Here is a direct video link.
“A new wave of problems could be approaching the mortgage industry. U.S. borrowers are increasingly missing payments on home equity lines of credit they took out during the housing bubble, and that could be another hit for the banks.” Here is a direct video link.
Given the advent of new regulation reducing profits from some of their criminal and unethical practices as well as the rash of litigation and record fines they have been dolling out for securities violations of late, another wave of loan losses will be hitting banks at a difficult time.
