Faber's Doomsday money strategy: 'Only lose
50%' - (finance.yahoo.com) Marc Faber famously
predicts that U.S. stocks will lose 30 percent of their value-a
prognostication, needless to say, that has not proven particularly prescient
over the years. Still, the author of the Gloom, Boom & Doom report
continues to see bubbles everywhere he looks, especially in U.S. equities. Given
his near-apocalyptic outlook, it's unsurprising that Faber's greatest focus is
on avoiding losses. But what's incredible is the degree of portfolio
destruction he's willing to tolerate. "I hope that when the collapse
happens, I'm only going to lose 50 percent of my money," Faber said
Thursday on CNBC's " Futures Now ."
China
Lender Faces $650 Million of Defaults From Shadow Banking - (www.bloomberg.com) A
Chinese bank was saddled with $650 million of defaults from an
off-balance-sheet lending arrangement that channeled money to one of its shareholders
and an affiliate, according to a state media report. Evergrowing Bank Co. in
Shandong province repaid 3.7 billion yuan ($600 million) of principal and 300
million yuan of interest on Aug. 29 as guarantor for the borrowing, the
People’s Daily said on its website today. Three calls to the lender for comment
went unanswered. Intricate structures for some off-balance-sheet lending by
China’s banks make it harder for investors to assess risks to the financial
system after an explosion in shadow banking. In some cases, banks have
channeled money to companies through trusts or brokerages to bypass government
limits on lending and requirements relating to provisions and capital.
Elon
Musk is building batteries in a desert when no one is buying - (finance.yahoo.com) Tesla's planned 5-million-square-foot
‘gigafactory' wouldn't just be the biggest battery factory in the
world. It would be one of the biggest factories in the world, period. But hours
before CEO Elon Musk took the podium last week to tout the $5 billion facility
came August sales numbers for electric vehicles and a spate of news stories
about how U.S. interest for electric cars has stalled. So what gives? Why would
Tesla build capacity for half a million car batteries a year if no one is
buying? Four charts below tell the story. First the bad news. August brought
another month of electric-car sales that came up short of previous highs.
Interest isn't falling, but at four percent market share for combined sales of
hybrids and plug-ins, people aren't exactly clamoring for them. The dark blue
shows hybrids, the light blue shows anything with a plug; stack them together
and you've got what's known as the electrified-vehicles market.
Venezuela
Threatens Harvard Professor for Default Comment - (www.bloomberg.com) Venezuelan
President Nicolas
Maduro instructed
the attorney general and public prosecutor to take “actions” against Harvard
Professor Ricardo Hausmann, saying the economist sought to destabilize the
country by suggesting the government default on its debt. Maduro lashed out at
Hausmann during a televised address last night, calling him a “financial
hitman” and “outlaw” who forms part of a campaign “that has been initiated
around the world against Venezuela.” He didn’t specify what actions he had
asked the attorney general and prosecutor to take.
Obama
losing the confidence of key parts of the coalition that elected him - (www.washingtonpost.com) Kimberly
Cole was part of the coalition that voted in 2008 to make Barack Obama the 44th
president and gave him another four years in 2012 to deliver on his promises of
hope and change. Now, the 36-year-old mother of three young children in
Valencia, Calif., is among the majority of Americans who have lost confidence
in Obama’s leadership and the job he is doing as president. “He’s been faced
with a lot of challenges, and he’s lost his way,” Cole said in an interview.
She worries that Obama lacks the resolve needed at a time when things at home
and abroad are looking scarier. On the other side of the country, Karlene
Richardson, 44, once counted herself a “very strong supporter” of the
president. But now she feels much the same as Cole does.
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