Category

Banks

Wall Street

One Trade to Profit from P2P Lending's Latest Headwind

For several months now, I've been telling you about the dangers of online lending, also known as peer-to-peer (P2P) lending.

Right now, the Supreme Court is giving serious consideration to a case that could undo decades of precedent… and absolutely crush online lenders.

Today, I'm going to tell you why the case could represent a landmark in finance... and more importantly, I'll give you a trade that can deliver profits no matter how the court ultimately rules...

Wall Street

Here's the Size of the Scam the Fed and U.S. Companies Are Pulling on Us

Stocks have been on a tear. After looking weak in February, they've soared close to 13% in a matter of weeks.

So why does it all feel like a magic trick? Why isn't the market rally giving investors any solid feelings? Why is everyone so nervous?

I'll tell you what's going on, who's responsible, and what you need to do now. Let's get started...

The Fed

What Today's Federal Reserve Meeting Means for Investors

At the U.S. Federal Reserve meeting today (Wednesday), Fed Chairwoman Janet Yellen said she expects the pace of rate hikes in 2016 to be "gradual," although that could change with economic conditions.

Many economists predict at least two more 0.25% interest rate hikes this year. That would bring the Fed's target interest rate up from 0.50% to 1%. As of Wednesday's meeting, the Fed left interest rates unchanged at 0.50%.

But by June, the CME Group expects there's a 51% chance of a rate hike...

election

Marc Faber Warns of Fed-Created Global Socialism, Backs Donald Trump

Marc Faber spoke with CNBC on Sunday to explain why he's worried that central banks, including the U.S. Federal Reserve, are rapidly contributing to the rise of global socialism.

The famed Swiss investor also backed GOP front-runner Donald Trump during his interview, for one surprising reason.

Here's what Faber had to say about nasty central banks, their bad policies, and the billionaire businessman he wants to see as the next U.S. president...

Wall Street

If You Want an Accurate Financial Forecast, Ask a Waiter

Many investors really start to study the markets this time of year in an effort to divine what's next for global markets and, by implication, their portfolios.

But for an accurate financial forecast, I turn to the world's top steak houses, which are known haunts for global traders anxious to blow off some steam and have a fabulous meal.

Today I'm going to talk about what's not"on the menu" – pardon the pun – and why. Then, I'll highlight an investment poised for profits as a result.

Here's what waiters can tell you that economics can't.

Global Markets

The Opportunity in the Eurozone's €650 Billion Leak

A funny thing happened while central banks were racing to make money cheap as free…

U.S. bank loan and deposit growth continues to go bonkers at annual growth rates of more than 8% for loans and around 6% for deposits.

Across the Atlantic, where negative-interest-rate policy (NIRP) is an ugly reality, loan and deposit growth in Europe is near zero – and that's in spite of the fact that Mario Draghi and his merry band of central bankers have thrown everything but the kitchen sink at their system to try to get it to grow.

But Draghi & Co. don't seem to realize their actions are killing Europe's markets while propping ours up.

It's going to end badly for the Europeans, but this insanity tends to create tremendous opportunities in American markets...

Wall Street

How You Can Profit When the Banks Raid Deposits

Protecting your capital from threats is a bedrock principle of investing.

It's why investors seek the relative safety of bonds, for instance, or precious metals or the U.S. dollar.

But right now, there's a severe capital threat brewing, courtesy of the politicians who bailed out the banks after the crisis.

What's worse, this is very likely going to hit your cash "where it sleeps."

We've seen this coming for years now, and there's been a major new development (that was conspicuously absent from the headlines) that raises the threat level to "imminent."

But there's some serious upside to capture as the banks get more desperate. Here's what I mean...

big banks

Bank Stress Test Kabuki Theater Begins Again

Welcome to another performance of "Bank Stress Test" Kabuki Theater – where the whole show, which first started in April 2009, is just a public performance.

In 2014, Bank of America (NYSE: BAC) passed its first round of stress tests with flying colors! For such good capital management, BOA was permitted to reward its shareholders.

But then an issue arose: BOA had miscalculated its capital... by a few billion dollars. And it gets worse than that...

Big Banks

How to Borrow Cheaply from a Government-Owned Bank

The free market for banking services in the United States isn't a free market at all.

The truth is the biggest commercial banks in America operate with virtual impunity as a government-subsidized, government-protected oligopoly.

So, why don't we drop the pretense that government-owned banks don't belong in a free market economy and create a network of honest state-owned banks to compete with so-called private banks?

We should. In fact, we have an almost 100 year-old U.S. bank as a model to copy.