Saturday, March 1, 2014

Martenson: Years Of Money Pumping Will End In Equity Rout

Our lead story: JP Morgan Chase, the largest bank in the US by assets is reducing its headcount for 2014. The bank announced the changes, saying that creating a business model that can deal with new regulation is cutting into the firm’s profits. JP Morgan said it expects its total headcount to fall by 5,000 to 260,000 people. But JP Morgan is confident that it can win in this new environment… by replacing humans with machines. Erin explains.Then we welcome Chris Martenson of Peakprosperity.com to give his thoughts on the Federal Reserve and the weak fundamentals of the US economy. In the first segment, Martenson discusses the effect of the huge flood of liquidity created by the Fed on the market. He also explains why bond prices can go up as a result of the Fed’s quantitative easing. After the break, Martenson describes why quantitative easing has helped equity prices but hasn’t helped the underlying economy. He also talks about what is happening with inflation in the economy.For today’s Big Deal, Erin chats with Ed Harrison about Mt. Gox and the future of Bitcoin. On Monday Mt. Gox abruptly stopped trading and shut down its website. An unconfirmed document circulating the internet suggests that Mt. Gox has lost upwards of 744,000 Bitcoins as a result of theft. Erin asks what happened and if Bitcoin will survive.
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