Goldman And SocGen Unleash The "C"-Word: Fear ECB Alone Can't Contain Grexit Risks

Submitted by Tyler Durden on 06/21/2015 - 20:16 Unnamed "officials" have proclaimed a new set of Greek proposals received by Brussels tonight as "a good base," according to AFP, and thusly the Euro is very modestly bid. However, both Socgen (without a 3rd bailout of €60-80 billion over the next 3 years, Greek uncertainty remains high and leaves Grexit risk merely semi-stable) and Goldman (a deal will come only after the introduction of capital controls, a technical default on the IMF and issuance of IOUs/and a further build-up of arreas... and the damage resulting from a breaking of the integrity of the Euro would not be fixed by monetary policy alone) leave us wondering just who is buying Euros and US stocks and selling Swiss Francs as D(efault) Day looms and the 'C' word (contagion) spreads.

Is This Complacency, Idiocy, Or Both?

Submitted by Tyler Durden on 06/21/2015 - 22:15 How can it be implied that the markets are too fragile to deal with an unexpected raise of interest rates to (gasp) 1/4 of 1%, if all the “data” we were told (or sold) has been showing signs of all this “improvement?” The question still remains: How does any Ivory Tower prognosticator, or Wall Street talking head, square all these circles? Simple – they don’t. They just act as if it they didn’t or won’t happen. Or, just continue to act as if we’re too dumb to answer. This is complacency, idiocy, and more – all turned up to 11!

Bond Trading Revenues Are Plunging On Wall Street, And Why It Is Going To Get Worse

Submitted by Tyler Durden on 06/21/2015 - 21:36 Among the renewed Greek drama, many missed a key development in the past week, namely Jefferies Q2 earnings, and particularly the company's fixed income revenue: traditionally a harbinger of profitability for Wall Street's biggest source of profit (or at least biggest source of profit in the Old Normal). And while not as abysmal as the 56% collapse in the first quarter, in the three months ended May 31 what has traditionally been the bread and butter of Dick Handler's operation generated just $153 million in revenue. CEO Handler blamed that decline on a lack of trading in the market and fewer companies selling junk bonds.

Fake Boobs, Flying Saucers, & Furniture: What's Your State's Stereotype?

Submitted by Tyler Durden on 06/21/2015 - 20:00 They are called stereotypes for a reason...

Credit Market Warning

Submitted by Tyler Durden on 06/21/2015 - 19:15 There are large signs of stress now present in the credit markets. You might not know it from today's multi-generationally low interest rates, but other key measures such as liquidity and volatility are flashing worrying signs. While some may hope that rising yields are signaling a return to more rapid economic growth, or at least that the fear of outright deflation has lessened, the more likely explanation is that something is wrong and it’s about to get... wronger.

Water Wars Crush California Wineries: "Whoever Has The Longest Straw Wins"

Submitted by Tyler Durden on 06/21/2015 - 18:30 Eerily reminiscent of the determinedly evil oil baron from the movie 'There Will Be Blood', Reuters reports the growing tensions amid California's drought-stricken wineries are boiling over: "There is way too much demand. I blame a lot of vineyards like other people do... It's a matter of who has the longest straw at the bottom of the bucket." No one should worry though, because the government is here to help - with a new water management agency...

Geopolitics Will Trump Economics In Greece

Submitted by Tyler Durden on 06/21/2015 - 17:45 Whatever the eventual financial costs to EU taxpayers of a Greek default, the political costs of a Greek exit are likely to be seen as unacceptable. Most likely the EU will allow a covert Greek default, disguised for the time being by extended repayment schedules, bogus refinancing formulae and possible delayed haircuts as bonds mature. They may insist that such moves are not a technical default. Despite that absurdity, our obedient press corps may even concur with such a characterization, and investors may be so thrilled that a relief rally occurs in stocks and bonds. Extend and pretend will once again be the only acceptable manner to confront our intractable problems.

Artist's Impression Of The New Crusades?

Submitted by Tyler Durden on 06/21/2015 - 17:00 Deniers Repent... or face the consequences...

Who Said It?

Submitted by Tyler Durden on 06/21/2015 - 16:14 ... the long-term deficit and debt that we have accumulated is unsustainable. We can't keep on just borrowing from China, or borrowing from other countries because part of it is, we have to pay interest on that debt. And that means that we're mortgaging our children's future with more and more debt, but what's also true is that at some point they're just going to get tired of buying our debt. And when that happens, we will really have to raise interest rates to be able to borrow...

Failed Dreams & Destroying Europe

from Armstrong Economics:
The whole idea of a One World Government that began in Europe with the Treasty of Rome was based upon the idea inside Europe that a single government would end war. They never considered that there are two sides to that coin – international war and internal war we call revolution. As Thomas Jefferson said: “I hold it that a little rebellion now and then is a good thing, and as necessary in the political world as storms in the physical.”
The ECB’s policy of negative interest rates was supposed to create rising inflation by forcing people to spend. They cannot understand that raising taxes is the offset. You cannot spend what you do not have and you will NOT spend as long as you lack confidence in the future outcome. Draghai’s policy is a fool’s dream and the collapse in bond markets demonstrates those who think they can manipulate society are just out of their minds. The difference between those in government and the private sector is monumental. The private sector, no matter how big the corporation, they seek to stimulate sales by providing what people want at the lowest cost to sell more, gain market share, and increase profits. Government functions precisely opposite – they seek to manipulate society with the big stick always threatening to punish – never reward.
Read More @ ArmstrongEconomics.org

Back to the Wall: Barriers Spring Up in Europe & Mideast Dividing Nations

from RT:

Corporate Propaganda News on Your iPhone

by Kurt Nimmo, Infowars:
Apple has announced with the next update of the operating system on its popular phone and tablet it will begin feeding selected news stories to millions of users. The tech giant said it is moving to be the primary news source on the devices, overshadowing others such as Facebook, Google and Flipboard.
It is estimated there are over 60 million iPhone users in the United States.
According to Apple, the news app “follows over a million topics and pulls relevant stories based on your specific interests.” Partner news organizations represent the forefront of the establishment media, including Conde Nast magazines, ESPN, The New York Times, Hearst, Time Inc., CNN and Bloomberg.
Read More @ Infowars.com

Jim Rogers: Turmoil Is Coming

from ChrisMartensondotcom:

There’s a Pile of Gold in Manhattan. Texas Wants It Back.

by Lauren Etter, Bloomberg:
Texas wants its gold back from the Yankees, wherever they’re keeping it.


Governor Greg Abbott signed a law last week to build a depository for its 5,600 bars of the precious metal and, as he said in a statement, “repatriate $1 billion of gold bullion from the Federal Reserve in New York.”
The gold, it turns out, isn’t at the New York Fed — it’s in a rented vault in midtown Manhattan — and is worth about $650 million. Regardless, Texas aims to bring it home.
Read More @ Bloomberg.com

Obama Wrong on Guns

from Bill Still:

Russia And Saudi Arabia Sign Six Deals, Agree To A Petroleum Alliance

by Dave Kranzler, Investment Research Dynamics:
Russia and Saudi Arabia signed six new cooperation deals last Thursday in an event that signifies a reversal of Saudi Arabia’s relationship with Russia under its new king. The six new cooperation agreements will advance the relationship between the two countries in all areas of commerce and included the areas of military and nuclear activities.
Perhaps most significant was statement from Saudi Arabia’s oil minister, Ali al-Naimi, who issued a statement about advancing the cooperation between Saudi Arabia and Russian in the oil market:
This, in turn, will lead to creating a petroleum alliance between the two countries for the benefit of the international oil market as well as producing countries and stabilizing and improving the market.
Read More @ Investmentresearchdynamics.com
image: Russia-Insider.com

Solutions: Laughing At Tyrants

from corbettreport:



You’ve heard that laughter is the best medicine, but did you also know that laughter is a tyrant slayer? Today on The Corbett Report we examine how laughter can change people’s perception and undermine even the most entrenched tyranny. James also launches a brand new DVD, “Laughing At Tyrants” that combines some of the funniest Corbett Report videos into a great tool for spreading truth and unlocking minds.

GOLD: Will This Summer’s Rally Mark A Cyclical Turning Point?

from Secular Investor:
It was another volatile week in the markets. The interest rate decision by the U.S. Fed on Wednesday was a non-event with no change in the Fed’s monetary policy. The market reacted with a spike in stocks, bonds, and precious metals, while the U.S. dollar took a dive. Also, the unfolding drama in Greece spooked markets and metals; stock markets are nervous while metals mostly get bids each time the Greek crisis flares up.
We focus on gold’s seasonality in this column and what it could mean for gold’s secular trend.
Between 1982 and 2012, gold typically started rising in early July, corrected slightly in October, and finished the year strongly higher. The first chart, courtesy of our friend, author, and market analyst Dimitri Speck, shows that the second week of June typically kicked off the yearly rise with a final dip.
Read More @ SecularInvestor.com

Future Shock And The Greening Of America

Submitted by Tyler Durden on 06/21/2015 - 20:45 The 1960s visibly changed society in a few short years, and less visibly, the economy. Two books published in 1970, at the end of the tumultuous 1960s, attempted to weave a coherent narrative of what everyone was experiencing: Future Shock and The Greening of America. If Future Shock and Present Shock have any predictive value, then we must conclude the speeding up of change is eroding our ability to make sense of present-day trends, as the velocity of change is outrunning our ability to construct coherent narratives.




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