Wednesday, December 8, 2021

Big Bank Bosses Are Dumping Their Stocks As “Credit Risk Ricochets Back”

0

from ZeroHedge:

“Credit risk is ricocheting back as a legitimate concern after years of hibernation…” warns David Hendler, founder and principal at Viola Risk Advisors, who considers recent share sales by executives at the big retail banks, in particular, to be smart, as consumer portfolios are showing signs of strain.

Wall Street analysts have been urging investors all year to buy stocks in the big US banks, but, as The FT reports, Wall Street itself is not listening.

We noted at the start of the year that executives of the biggest TBTF banks were dumping their shares as a post-Trump rally took their stock prices higher

And now, as The FT reports, it continues to gather pace. Insiders at the big six banks by assets — JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, Goldman Sachs and Morgan Stanley — have in total sold a net 9.32m shares on the open market since the turn of the year. Even excluding Warren Buffett’s big dumping of shares in Wells in April, to avoid tripping over rules capping ownership by a non-bank, sales by insiders outnumber purchases by about 14 to one.

Read More @ ZeroHedge.com

DEATH OF THE U.S. DOLLAR RESERVE CURRENCY… Picking Up Speed

0

by Steve St. Angelo, SRSrocco:

The Death of the U.S. Dollar as the world’s reserve currency will have a profoundly negative impact on the lives of most Americans.  Unfortunately, 99{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of the population has no clue.  The only reason 1{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of U.S. citizens understand what is going on, is because the Mainstream media and financial networks have distorted the truth and the reality of our present situation.

What happened in the markets today was a perfect example.  Zerohedge published an article today titled,  ‘Traders’ Panic-Buy Stocks, Shrug Off Nuclear Armaggedon, Debt Ceiling, & Biblical Flood Fears, and stating the following:

For a few brief hours overnight – until the bell rang at 0930ET on the NYSE – investors were anxious about North Korea’s most provocative yet missile launch, the terrible flooding disaster in Texas, and lest we forget, the looming debt ceiling debacle. But all of that was instantly forgotten as the machines took control and lifted stocks higher practically all day on a sea of USDJPY-ignited momentum.

Looking at the chart above, we can see that when fear came into the markets during the North Korea missile incident and then the opening of the European markets (shown in the two red boxes), the Dow Jones Index fell as well as the USDJPY, while gold and the U.S. Treasurys increased.

However, after the U.S. markets opened, MAGICALLY everything reversed because the nuclear threat with N. Korea, Biblical flooding in Texas and the upcoming debt ceiling issue no longer mattered.  Those of us in the Alternative Media find this quite hilarious that nothing negatively impacts the financial markets anymore.  Some have laughed while saying, “If a nuclear bomb had taken out New York City, the stock market would probably go up.”  While I doubt that would happen, it is becoming a real joke to watch the financial markets today.

I wrote about the insanity in the markets today and how it has negatively impacted the value of the precious metals in my recent article, The Reason Why Gold & Silver Have Frustrated Investors Since 2011.  In the article I posted the chart below, by a Deutsche Bank analyst Aleksandar Kocic, on why the Markets Broke In 2012:

The description of the indicator above may be a bit difficult to understand so that I will simplify it.  The BLUE LINE represents the “Economic Uncertainty Policy” (EPU index) shown by the frequency of articles in ten leading US newspapers that contain three of the target terms: economy, uncertainty; and one or more of Congress, deficit, Federal Reserve, legislation, regulation or White House in the mainstream media.  The BLACK LINE is the VIX index, the volatility index (S&P 500).  Economic uncertainty printed in articles in the Mainstream Media should correspond with the volatility indicator of the markets (the VIX).

And, this is what precisely took place from 1996 to 2011.  The blue and black lines moved up and down in tandem.  However, after 2011, something changed.  According to Kocic:

Intuitively, when VIX is in tune with EPU, the market is acknowledging the levels of risk through the prices. However, when VIX is low and EPU high, markets are complacent – they are underpricing risk.

After 2011, the two measures of risk decouple with VIX consistently low despite growing uncertainty. The breakdown is structural, and it is visible across all market sectors, not only equities.

What Kocic is saying is that the market has become highly complacent and is severely underpricing risk.

Read More @ SRSrocco.com

Forgotten history: US bankers financing US enemies—and why it is important now

by Jon Rappoport, No More Fake News:

In 1971, Gary Allen published his book, None Dare Call it Conspiracy. It quickly became an unofficial best seller.

Over the years, several million copies have been sold.

Allen’s thesis was stark: super-rich American capitalists were financing socialism. This bizarre paradox was resolved when socialism was properly understood—not as “power to the people”—but as elite power over the people. In other words, as a hoax.

These days, the socialist hoax is still unknown to most of the population.

Cloak a global power grab as progress for all of humanity.

Here, from chapter six of None Dare Call it Conspiracy, “The Rockefellers and the Reds,” is a devastating passage commenting on the period just after the Russian Revolution of 1917:

“The Rockefellers assigned their public relations agent, Ivy Lee, to sell the American public the idea that the Bolsheviks were merely misunderstood idealists who were actually kind benefactors of mankind.”

Professor Antony Sutton of Stanford University’s Hoover Institution, notes in his highly authoritative Western Technology and Soviet Economic Development:”

“’Quite predictably…[Ivy] Lee concludes that the communist problem is merely psychological. By this time he is talking about “Russians” (not Communists) and concludes “they are all right.” He suggests the United States should not engage in propaganda; makes a plea for peaceful coexistence; and suggests the United States would find it sound policy to recognize the USSR and advance credits [give loans].’ (Antony Sutton, Western Technology and Soviet Economic Development, 1917-1930, Hoover Institution on War, Revolution and Peace, Stanford University, Calif., 1968, p.292)”

“After the Bolshevik Revolution, Standard [Oil] of New Jersey [Rockefeller] bought 50 per cent of the Nobel’s huge Caucasus oil fields even though the property had theoretically been nationalized [by Russia]. (O’Connor, Harvey, The Empire Of Oil, Monthly Review Press, New York, 1955, p.270.)”

“In 1927, Standard Oil of New York [Rockefeller] built a refinery in Russia, thereby helping the Bolsheviks put their economy back on its feet. Professor Sutton states: ‘This was the first United States investment in Russia since the Revolution.’ (Ibid, Vol.1, p.38)”

“Shortly thereafter Standard Oil of New York and its subsidiary, Vacuum Oil Company [Rockefeller], concluded a deal to market Soviet oil in European countries and it was reported that a loan of $75,009,000 to the Bolsheviks was arranged. (National Republic, Sept.1927.)”

“…Wherever Standard Oil would go, Chase National Bank was sure to follow. (The Rockefeller’s Chase Bank was later merged with the Warburg’s Manhattan Bank to form the present Chase Manhattan Bank.) In order to rescue the Bolsheviks, who were supposedly an archenemy, the Chase National Bank was instrumental in establishing the American-Russian Chamber of Commerce in 1922. President of the Chamber was Reeve Schley, a vice-president of Chase National Bank. (Ibid, Vol.11, p.288) According to Professor Sutton: ‘In 1925, negotiations between Chase and [Russian] Prombank extended beyond the finance of raw materials and mapped out a complete program for financing Soviet raw material exports to the U. S. and imports of U. S. cotton and machinery.’ (Ibid, Vol.11, p.226) Sutton also reports that ‘Chase National Bank and the Equitable Trust Company were leaders in the Soviet credit business.’ (Ibid, p.277)”

“The Rockefeller’s Chase National Bank also was involved in selling Bolshevik bonds in the United States in 1928. Patriotic organizations denounced the Chase as an ‘international fence.’ Chase was called ‘a disgrace to America… They will go to any lengths for a few dollars profits.’ (Ibid, Vol.11, p.291) Congressman Louis McFadden, chairman of the House Banking Committee, maintained in a speech to his fellow Congressmen:”

“’The Soviet government has been given United States Treasury funds by the Federal Reserve Board and the Federal Reserve Banks acting through the Chase Bank and the Guaranty Trust Company and other banks in New York City.”

“’Open up the books of Amtorg, the trading organization of the Soviet government in New York, and of Gostorg, the general office of the Soviet Trade Organization, and of the State Bank of the Union of Soviet Socialist Republics and you will be staggered to see how much American money has been taken from the United States’ Treasury for the benefit of Russia. Find out what business has been transacted for the State Bank of Soviet Russia by its correspondent, the Chase Bank of New York’. (Congressional Record, June 15, 1933.)”

“But the Rockefellers apparently were not alone in financing the Communist arm of the Insiders’ conspiracy. According to Professor Sutton ‘… there is a report in the State Department files that names Kuhn, Loeb & Co. (the long established and important financial house in New York) as the financier of the [Russians’] First Five Year Plan. See U. S. State Dept. Decimal File, 811.51/3711 and 861.50 FIVE YEAR PLAN/236.’ (Sutton, op. cit., Vol. II, p. 340n.)”

“Professor Sutton proves conclusively in his three volume history of Soviet technological development that the Soviet Union was almost literally manufactured by the U.S.A…”

“…Sutton shows that there is hardly a segment of the Soviet economy which is not a result of the transference of Western, particularly American, technology.”

“This cannot be wholly the result of accident. For fifty years the Federal Reserve-CFR-Rockefeller-lnsider crowd has advocated and carried out policies aimed at increasing the power of their satellite, the Soviet Union. Meanwhile, America spends $75 billion a year on defense to protect itself from the enemy the Insiders are building up.”

NOTE: The descendants of these bankers are now doing everything they can to build up the story that Donald Trump won the presidency by colluding with Russians. To call this an irony, in view of the above information, would be a vast understatement.

However, the motives of these men are clear: regardless of whether Trump meant to keep his promises to destroy Globalism (aka worldwide socialism), his mere mention of Globalism as the enemy, during the presidential campaign, and his declared opposition to Globalist “free trade” treaties, was sufficient to warrant an all-out attack on him.

The whole idea of nationalism as preferable to Globalism could act as a contagious germ spreading to the people of other countries—so Trump as the face and symbol of such sentiments had to be defamed and crushed.

Through various front organizations, cutouts, dupes, brainwashed useful idiots, and violent hired thugs, that operation to crush Trump is well underway.

Again—and this point must be understood—IT DOESN’T MATTER WHETHER TRUMP EVER MEANT TO KEEP HIS PROMISE TO BURY GLOBALISM. THE MERE MENTION OF GLOBALISM AS THE ENEMY WAS AND IS SUFFICIENT TO WARRANT UNCEASING ATTACKS AGAINST HIM.

Many, many of Trump’s supporters want to see Globalism buried.

Ultimately, they are the real target of the Globalists, who want to neutralize and disperse them and make them passive and demoralized.

Read More @ NoMoreFakeNews.com

Is This The Next Paypal?

0

from SilverDoctors:

This Disruptive Tech Is Set To Revolutionize How We Pay For Things…

The world has had enough of paper money.

Now that consumers are done with physical wallets, the multi-billion-dollar mobile pay app market is minting new digital barons at breakneck speed.

And we’ve just identified one company at the forefront of the revolution which has a very compelling story.

Glancepay is already the no. 1 mobile payment app in Canada, ranking at over 92 percent of mobile payment app downloads. It’s also making big waves across North America, where it ranks 37 percent of all mobile payment app downloads.

This could be a timely opportunity for early investors who understand what’s about to happen.

For example, when Alipay hit the Chinese market with its instant mobile app pay features, it was an overnight sensation. Now, it’s conducting a massive $1.7 trillion in business annually in China.

And this story is very exciting because GlancePay (CSE:GETOTC:GLNNF) is also making inroads in the billion-dollar cannabis market in a deal that gives them direct ownership in Canapay Financial Inc. and they are planning moves into cryptocurrency markets, too.

Mobile payment technology is one of the fastest-growing markets in the world, and GlancePay is hoping to be the major market disrupter—filling a gap that not even the trillion-dollar Chinese turnover is filling, nor major players on the North American scene.

How? By focusing equally on merchants and consumers, losing cumbersome and security-plagued hardware, and offering much more than just one-click payments: rewards, choices, and even tab-splitting.

In short, GlancePay (CSE:GET) has apps that can simply take a glance at where you are… using proprietary and patented GPS / micro-location and image identification technology… and pays your merchant…in seconds.

It’s holistic, streamlined, and has the technology with patents to protect it, an issue that has kept major players from securing greater market share over the past few years.

In the age of convenience, no one favors the contortionist gymnastics required to hang out the window to pay a parking stub that may or may not work under the pressure of honking horns lined up behind.

PayByPhone founder Desmond Griffin already spotted that trend before it was one, and created the defacto leader in this burgeoning space.

Likewise, in this era of instant gratification, it seems unnecessary to wait for the check in a restaurant, and then wait again while the waitress shuttles back and forth to complete the transaction. Restaurant owners would agree, wholeheartedly: Mobile pay apps mean faster table turnover and more revenues. This time, Griffin not only spotted the trend—he spotted what existing offerings were lacking, integration and a much bigger picture.

GlancePay is nothing if not forward-thinking: We’re less than a year away from the launch of legalized recreational use of marijuana in Canada, and GlancePay is already taking advantage of the onslaught of consumer demand to come, and the already existing demand for medical marijuana. For a recreational marijuana industry that could be worth $22.6 billion annually, GlancePay guarantees lighting fast turnaround for vendors, and one-click pay for buyers.

Launched only in September 2016, Glance Pay already has 160 merchants signed on, and its growth is poised to soar in the coming weeks and months. Its Q2 revenue is up a whopping 664{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} over the previous quarter.

Here are 5 reasons to keep a close eye on GlancePay (CSE:GETOTC:GLNNF)

#1 Proprietary and Patented Technology

GlancePay is a streamlined payment platform that allows customers to pay their bill instantly with their mobile device. It means no more waiting on waitresses; no more credit card machines; and a single app rather than one for each restaurant.

The app knows where you are using patented GPS technology. And, if GPS isn’t available, it can even determine your location using a photo of where you are. Much like Google has mapped the world… GlancePay has quietly built a proprietary global database of locations.

It’s as easy as point, shoot, pay.

But it is also much more. It takes the mobile pay app experience much further than Apple Pay, which only iPhone owners can use, and which has failed so far to gain widespread usage.

With GlancePay, you’re not just paying a bill: The system includes in-app marketing, in-store rewards, transaction history, payment confirmation, and even the ability to split the tab in a restaurant. It incentivizes users… and adoption is picking up from this network effect.

It also helps you choose nearby restaurants, and soon, it will also let you order from your table, pre-order for pickup, or order for delivery.

For restaurants, it means better business, faster turnaround and potentially greater revenues.

The company estimates that restaurants will benefit from 10{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} faster table turnover during peak periods, improved server productivity, which should generate bigger tips, and a loyalty/rewards program that could encourage customer returns and even attract new customers. The built-in feedback program also adds to the big-picture offering here, by giving restaurants a faster, easier way to earn reviews and ratings.

Read More @ SilverDoctors.com

Weird Things Are Happening With Gold

by Jim Rickards, Daily Reckoning:

Last week featured two unusual stories on gold — one strange and the other truly weird. These stories explain why gold is not just money but is the most politicized form of money.

They show that while politicians publicly disparage gold, they quietly pay close attention to it.

The first strange gold story involves Germany…

The Deutsche Bundesbank, the central bank of Germany, announced that it had completed the repatriation of gold to Frankfurt from foreign vaults.

The German story is the completion of a process that began in 2013. That’s when the Deutsche Bundesbank first requested a return of some of the German gold from vaults in Paris, in London and at the Federal Reserve Bank of New York.

Those gold transfers have now been completed.

This is a topic I first raised in the introduction to Currency Wars in 2011. I suggested that in extremis, the U.S. might freeze or confiscate foreign gold stored on U.S. soil using powers under the International Emergency Economic Powers Act, the Trading With the Enemy Act or the USA Patriot Act.

This then became a political issue in Europe with agitation for repatriation in the Netherlands, Germany and Austria. Europeans wanted to get gold out of the U.S. and safely back to their own national vaults. The German transfer was completed ahead of schedule; the original completion date was 2020.

But the German central bank does not actually want the gold back because there is no well-developed gold-leasing market in Frankfurt and no experience leasing gold under German law.

German gold in New York or London was available for leasing under New York or U.K. law as part of global price-manipulation schemes. Moving gold to Frankfurt reduces the floating supply available for leasing, making it more difficult to keep the manipulation going.

Why did Germany do it?

The driving force both in 2013 (date of announcement) and 2017 (date of completion) is that both years are election years in Germany. Angela Merkel’s position as chancellor of Germany is up for a vote on Sept. 24, 2017. She may need a coalition to stay in power, and there’s a small nationalist party in Germany that agitates for gold repatriation.

Merkel stage-managed this gold repatriation with the Deutsche Bundesbank both in 2013 and this week to appease that small nationalist party and keep them in the coalition. That’s why the repatriation was completed three years early. She needs the votes now.

The truly weird gold story comes from the United States…

Secretary of the Treasury Steve Mnuchin and Senate Majority Leader Mitch McConnell just paid a visit to Fort Knox to see the U.S. gold supply. Mnuchin is only the third Treasury secretary in history ever to visit Fort Knox and this was the first official visit from Washington, D.C., since 1974.

The U.S. government likes to ignore gold and not draw attention to it. Official visits to Fort Knox give gold some monetary credence that central banks would prefer it does not have.

Why an impromptu visit by Mnuchin and McConnell? Why now?

The answer may lie in the fact that the Treasury is running out of cash and could be broke by Sept. 29 if Congress does not increase the debt ceiling by then.

But the Treasury could get $355 billion in cash from thin air without increasing the debt simply by revaluing U.S. gold to a market price. (U.S. gold is currently officially valued at $42.22 per ounce on the Treasury’s books versus a market price of $1,285 per ounce.)

Once the Treasury revalues the gold, the Treasury can issue new “gold certificates” to the Fed and demand newly printed money in the Treasury’s account under the Gold Reserve Act of 1934. Since this money comes from gold revaluation, it does not increase the national debt and no debt ceiling legislation is required.

Read More @ DailyReckoning.com

Total G-3 Central Bank Control

by Turd Ferguson, TF Metals:

There’s a lot of amazement and wonder at how the “stock market” can be up today with the devastating news out of Texas and the latest North Korean missile launch. Longtime readers of TFMR know exactly how this market levitation is accomplished so this post is designed as a public service in order to better educate and inform everyone else.

Let’s just keep it simple…

In 2017…and, actually, since 2008…the “markets” don’t actually exist. Oh sure, there are trades and prices but in terms of what the markets were 20 years ago?…those days are long gone. Instead, what we have now is total HFT domination. Over 90{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of all volume on the NYSE and NASDAQ is now done through HFT machines that swap positions back and forth. This is common knowledge and if you and I know this, then you can be assured that The Fed, The ECB and the BoJ (known henceforth as the G-3) know this, too.

To that end, since the G-3 are dedicated to market stability and the wealth effect, these central banks clearly seek to influence the direction of the equity markets by influencing the two key drivers of the HFT machines. And what are these drivers? The currency pair of USDJPY and the volatility index known as the VIX. Simply stated, if your wish is to drive “the stock market” higher, all you need to do is buy the USDJPY while at the same time selling the VIX. It truly is that simple.

To that end, daily observation of trading patterns allows us to observe a clear and obvious, algo-driven program in the all-important USDJPY. Because of the sheer size of the forex market (up to $7T/day), any algorithm put in place to manage this pair could only come from pockets deep enough to make it happen….namely, the G-3.

And what does this computer-based, G-3 buying program look like. Again, in the simplest terms, this program sets up a USDJPY floor at some pre-determined or even random level. Once a bounce is initiated, a buy program then follows after the pair have come back down to a newly-discovered double bottom. For today (Tuesday, the 29th), it looked like this:

Read More @ TFMetals.com

“Stock Market?” What Stock “Market?”

by Dave Kranzler, Investment Research Dynamics:

“There are no markets, only interventions” – Chris Powell, Treasurer and Director of GATA

To refer to the trading of stocks as a “market” is not only an insult to any dictionary in the world that carries the definition of “market,” but it’s an insult the to intelligence of anyone who understands what a market is and the role that a market plays in a free economic system.  By the way, without free markets you can’t have a free democratic political system.

The U.S. stock is rigged beyond definition. By this I mean that interference with the stock market by the Federal Reserve in conjunction with the U.S. Government via the Treasury’s Working Group on Financial Markets – collectively, the “Plunge Protection Team” – via “quantitative easing” and the Exchange Stabilization Fund has destroyed the natural price discovery mechanism that is the hallmark of a free market.  Capitalism does not work without free markets.

Currently a geopolitically belligerent country is launching ICBM missiles over a G-7 country (Japan).   In response to this belligerence, the even more geopolitically belligerent U.S. is testing nuclear bombs in Nevada.  The world has not been closer to the use of nuclear weapons since Truman used them on Japan.  The stock markets globally should be in free-fall if the price discovery mechanism was functioning properly.

To compound the problem domestically in the U.S., the financial system is now staring down a potential financial catastrophe that no one is discussing.  The financial exposure to the tragedy in Houston is conservatively estimated at several hundred billion.  Insurance companies off-load a lot of risk exposure using derivatives.  The potential counter-party default risk connected to this could dwarf the defaults that triggered the AIG and Goldman Sachs de facto collapse in 2008.   The stock “market” should be down at least 20{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} just from the probability of this occurrence.  Forget the hurricane issue, Blackrock estimates that insurance investment portfolios could lose half a trillion in value in the next big market sell-off.  Toxicity + toxicity does not equal purification.  The two problems combined are the equivalent of financial nuclear melt-down.

Last night after the news had circulated of the missile fired by North Korea, the S&P futures dropped over 20 points and gold shot up $15.  As I write this, the Dow is up 50 points, the SPX is up over 3 points and gold has been taken down $20 from its overnight highs.  Yet the two catastrophic risks above have not changed in potential severity.   Pushing around the markets is another propaganda tool used by the Government in an attempt to control the public’s perception.  In the words of the great Jim Sinclair, “management of perception economics,” or “MOPE.”

The good news is that, while the systemic puppeteers can control the markets in general, they can’t control the individual parts.  There has been a small fortune to be made shorting individual stocks.  Today, for instance, Best Buy reported earnings that predictably “beat” the Street estimates but it warned about future sales and earnings.  The stock has plunged 11{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} from yesterday’s close.  The Short Seller’s Journal featured Best Buy as a short in the May 28th issue at $59.  The target for this stock is $12.50, where it was in 2013.  I recommended some January 2019 puts as high probability trade to hit a home run on this idea.

Read More @ InvestmentResearchDynamics.com

The US Cities with the Biggest Housing Bubbles

0

by Wolf Richter, Wolf Street:

This is how monetary policies have crushed the value of labor.

For the good folks who hope fervently that the Fed doesn’t have reasons to raise rates or unwind QE because there isn’t enough inflation, here is an update on one aspect of inflation – asset price inflation, and particularly house price inflation – where the value of your hard-earned dollars has collapsed over a given number of years to where it takes a whole lot more dollars to pay for the same house.

So here are some visuals of amazing house price bubbles, city by city. Bubbles really aren’t hard to recognize, if you want to recognize them. What’s hard to predict accurately is when they will burst. Normally the Fed doesn’t want to acknowledge them. But now it has its eyes focused on them.

The S&P CoreLogic Case-Shiller National Home Price Index for June was released today. It jumped 5.8{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} year-over-year, not seasonally adjusted, once again outpacing growth in household incomes, as it has done for years. At 192.6, the index has surpassed by 5{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} the peak in May 2006 of crazy Housing Bubble 1, which everyone called “housing bubble” after it imploded (data via FRED, St. Louis Fed):

The Case-Shiller Index is based on a rolling-three month average; today’s release was for April, May, and June data. Instead of median prices, it uses “home price sales pairs,” for example, a house sold in 2011 and then again in 2017. Algorithms adjust this price movement and add other factors. The index was set at 100 for January 2000. An index value of 200 means prices have doubled in the past 17 years, which is what most of the metros in this series have accomplished, or are close to accomplishing.

Real estate is local. Therefore real estate bubbles are local. If enough local bubbles balloon at the same time, it becomes a national housing bubble. As the above chart shows, the US national Housing Bubble 2 now exceeds the crazy levels of Housing Bubble 1, and in all ten major metro areas, home prices are setting new records.

Read More @ WolfStreet.com

Russia Backpedals On Bitcoin – Unveils Plan To Ban Cryptocurrency Sales To “Ordinary People”

0

from ZeroHedge:

After local Russian media reported earlier this year that the Russian Parliament could legalize bitcoin as soon as 2018, Deputy Finance Minister Alexei Moiseev this week signaled that authorities might instead seek to restrict its use. During an interview with Russia 24, a state-owned news channel, Moiseev said that Russian authorities should treat cryptocurrencies, including bitcoin, as sophisticated financial assets and restrict their use and trading to qualified investors only.

Moiseev’s statement surprised members of Russia’s digital currency community, who had been lead to believe that the Russian government was finally warming to digital currencies after years of skepticism. That belief was strengthened earlier this month when an aide to Vladimir Putin announced that he would seek to raise $100 million to build bitcoin mining infrastructure in Russia, with the goal of controlling as much as 30{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of the bitcoin network’s hashpower.

“’Cryptocurrency should be regulated as a financial asset,’ Vedomosti reported him saying. ‘There is a point of view that cryptocurrencies such as bitcoin is a financial pyramid. Investments [in] such are high-risk. This determines our approach to their regulation.’

 

RBC quoted him saying: “We propose to call it a currency, but regulate it as other property, qualify it as a financial asset and allow only qualified investors to buy and sell them on the exchange.

As a regulated financial security, Moiseev said cryptocurrencies would be sold through stock exchanges under the supervision of the Federal Financial Monitoring Service of the Russian Federation, also known as Rosfinmonitoring, according to Bitcoin Magazine.

 

Moiseev added that bitcoin is a “dangerous” investment, and that it’s the government’s duty to protect “ordinary people” from losing their shirts, according to CoinTelegraph.

“For ordinary people, there’s no way because these are very dangerous investments that could lead to loss of money.”

 

According to Moiseev, Russia’s ministry of finance is discussing how to proceed with the central bank and the Moscow stock exchange. Moiseev added that it is necessary for cryptocurrencies to sell through the exchange “to provide judicial protection to participants in transactions.”

Moiseev detailed that this approach to cryptocurrency regulation aims to protect the rights of buyers and sellers. “Now people do it at their own peril and risk, they have no judicial protection. This is our first task,” he was quoted by Vedomosti.

Read More @ ZeroHedge.com