Submitted by Tyler Durden on 08/31/2015 - 10:41
With the biggest miss sicne April 2013, Dallas Fed's 2-month dead-cat-bounce has collapsed to -15.8 (against expectations of -4.0). This is practically the weakest level for the manufacturing index since 2009. The entire report is a disaster - Fisher's exit seems well timed? - as New Orders crash from +0.7 to -12.5 and Pries Paid craters from +0.1 to -8.0.Even worse, 14 of the 15 'hope' indicators declined and as one respondent warned "the quantitative easing hangover is starting." We have 3 simple words - "not unequivocally good."
TBP Editors Note – Watch the damn video. Then tell me if Josie is;
A) Right on the money
C) A starry-eyed dreamer
D) Other (make sure you explain it)
On a practical level, I do know this. If I don’t obey the laws, or pay the taxes, then I will damned well know who owns my fat ass ….. the prison. So, I pay and obey. I guess I’ll never escape my slavery. And that just f**kin’ sucks arse!.
Submitted by Tyler Durden on 08/31/2015 - 10:26 With corporate profits falling, margin debt at all-time highs, the Fed preparing to raise rates, China’s fake economic system imploding, currency wars breaking out across the globe, emerging markets in turmoil, oil dependent countries in the Middle East seeing budgets go deeply in the red, Greece and the other insolvent southern European countries nearing collapse and tensions rising between Russia, Europe and the U.S., there is plenty to fear in this central banker created debt bubble world. History teaches us this isn’t over. It’s only just begun. The bubblevision assertions that the worst is behind us is false. They will insist all is well until you’ve lost half your net worth. When fear overtakes greed, neither monetary easing, propaganda, nor acts of desperation by politicians, government bureaucrats, or central bankers will turn the tide.
Submitted by Tyler Durden on 08/31/2015 - 10:03 The current VIX level of 26 is equal to the median VIX level over the last three recessions. As Goldman warns, while extreme VIX levels periodically occur, our analysis shows that VIX levels in the high-twenties to low-thirties for extended periods of time are rare outside of recessions. Furthermore, this was foreseeable as equities were ignoring potential warning signs from other asset classes prior to the recent sell-off.
Submitted by Tyler Durden on 08/31/2015 - 14:30 "In the almost 20 years I have spent following politics closer than close, I've never seen anything like the total reversal in how Trump is perceived by Republican voters. It is, quite literally, unprecedented."
Submitted by Tyler Durden on 08/31/2015 - 14:12 Seriously, what the f##k is going on over there?
*BLAST SEEN IN CHEM. IND. ZONE IN SHANDONG, CHINA: PEOPLES DAILY
This is the second explosion in Shandong, which both follow the huge and deadly explosion in Tianjin.
Submitted by Tyler Durden on 08/31/2015 - 11:09 German bonds are under significant pressure again this morning - despite equity weakness and US Treasury strength. This raises the rather interesting question of whether - after decimating Treasuries last week, is China turning to its Bund holdings and liquidating them to raise cash?
Submitted by Tyler Durden on 08/31/2015 - 11:20 Don’t look now, but undergrad economics is rearing its ugly again at Wal-Mart as the retailer cuts workers’ hours in a desperate attempt to offset more than a billion in wage hikes.
Submitted by Tyler Durden on 08/31/2015 - 12:14 "The market closed above last Monday's high, which was a gap downside. And it also closed above the prior Friday's close. And that led to exhaustion. We should see the market drift lower for the next month or so. And we could probably make a new low, the low of last week's low, before the market finally bottoms."
Submitted by Tyler Durden on 08/31/2015 - 14:03 On the face of it, the crash and massive rebound makes little sense, with many oil market analysts undoubtedly left shaking their heads. But there is a logic to what unfolded, just not the logic of the physical market for crude.
Submitted by Tyler Durden on 08/31/2015 - 13:41 Attempts to explain exactly what happened last Monday when prices for a whole host of ETFs and mutual funds diverged markedly from fair value abound and while there's no way to know for sure exactly what went wrong, FactSet has drawn some tentative conclusions after conducting a bit of "voodoo, tea-leaf reading."
Submitted by Tyler Durden on 08/31/2015 - 13:15 The tremors rattling markets are not exactly what they seem to be. A meme prevails that these movements represent a kind of financial peristalsis - regular wavelike workings of eternal progress toward an epic more of everything, especially profits! You can forget the supposedly “normal” cycles of the techno-industrial arrangement, which means, in particular, the business cycle of the standard economics textbooks. Those cycle are dying. They’re dying because there really are Limits to Growth and we are now solidly in grips of those limits.
Submitted by Tyler Durden on 08/31/2015 - 12:48 Following Milt Pappas' September 1972 'no hitter', The Dow dropped over 40%. Carlos Zambrano's 'no hitter' in 2008 came right before the Lehman bankruptcy weekend and was followed a 6000-point-plus collapse in The Dow. So, when we saw Jake Arrieta's 'no hitter' this weekend, we can only imagine what doom it implies for US stocks.
Submitted by Tyler Durden on 08/31/2015 - 12:27 World oil production is about 90 million barrels a day, representing a cash flow of about nine billion dollars a day which comes down to three trillion dollars a year. With the oil price 40 to 50% lower, this flow is also cut by 40 to 50%. This amounts to 10% US GDP. Compare it with the 0.5% growth we are now missing in China, we prefer to keep our eyes on the oil price. These extreme moves can not be without consequence.
Submitted by Tyler Durden on 08/31/2015 - 12:08 Is Andy Hall calling in every favor possible, and painting the tape to save his career? Or just an epic short squeeze ramp to the 50DMA at $49.36?
Submitted by Tyler Durden on 08/31/2015 - 11:42 If not for the squeeze at the end of last week, this would have been European stocks' worst week since Lehman. However, with the 'save' Stoxx 600 (Europe's S&P 500) dropped almost 9% - its biggest drop since the peak of the EU crisis in 2011...
Submitted by Tyler Durden on 08/31/2015 - 11:32 The equity market momo-igniters tried USDJPY - and failed. Then they tried XIV - and failed. So what next? WTI crude of course which has just exploded back to Friday's highs, with Brent Crude also breaking back above $50.
Submitted by Tyler Durden on 08/31/2015 - 10:57 "It is estimated that sub-Saharan Africa will have 900 million more inhabitants in the next twenty years. Of these, at least 200 million are young people looking for work. The chaos of their countries of origin will push them further north." That is the future. It will no more go away by itself, and by ignoring it, than the present crisis, which, devastating as it may be, pales in comparison. Europe risks being overrun in the next two decades.
The massive Quantitative Easing (QE) abuse by the USFed and steeped lies are centered on its volume, which in reality is an order of magnitude higher than admitted. The recent usage of certain REPO windows has been effective to disguise huge volume of bond purchases. The entire bond system is irreparably corrupted. The REPO window hides QE extras with naked bond shorting linked to a $1 trillion extravaganza that receives almost no publicity. While the public, and even more financial market participants, focus on the Dow Jones stock index, the Treasury Bond yield, the crude oil price, and very little else, they overlook the Reverse REPO window and the related Failures to Deliver data for USTreasury Bonds. The two work like a hand and glove.
Over the past few days, it’s quite evident that alot has changed on the global financial landscape. However, there have recently been a few developments in China, which further signal that everything we know is about to change.
Several weeks ago, I made the case that China had been taking certain measures to put pressure on DC to give them more hefty weighting in the IMF, particularly regarding SDR inclusion. Now that it has been confirmed that SDR inclusion “will be put off for at least a year”, China has decided to take matters into its own hands…by burying two twin fangs into the US Dollar standard.
A longtime friend/colleague of mine sent me a note tonight in which he said he thought something significant might be coming to light about gold in the next week or two. There’s certainly some unusual behavior on the Comex, with Goldman taking delivery of 98,300 ounces last week (2.8 tonnes), the amount of gold cleared on the LBMA at the a.m. fix spiked up from an average of about 100,000 ozs per day to over 150,000 ounces, the Shanghai Gold Exchange saw the 4th largest withdrawal of gold in its history and the premiums on both physical gold and silver rose considerably.
It’s anyone’s guess what might be going on, but China is certainly accumulating an increasing amount of the Wall Street Journal’s “Pet Rock.” And the Chinese seem to be unloading a massive amount of dollars/Treasuries.
Dementia and other neurological brain diseases are striking people younger and younger, according to a new study conducted by researchers from Bournemouth University in England and published in the journal Surgical Neurology International. These diseases have reached levels that are “almost epidemic,” the researchers said, and they reached them so quickly that environmental factors must be largely to blame.
“The rate of increase in such a short time suggests a silent or even a ‘hidden’ epidemic, in which environmental factors must play a major part, not just ageing,” lead researcher Colin Pritchard said. “Modern living produces multi-interactional environmental pollution but the changes in human morbidity, including neurological disease is remarkable and points to environmental influences.”
Free speech has officially failed.
Reports are pouring in that the politically-correct politics surrounding the term ‘white privilege’ are gaining traction at many universities.
Plenty of professors at various colleges across the nation are confronting students with racial and ethnic issues, and decimating their grades if they aren’t sensitive enough to the use of delicate terminology.
Campus Reform reported on political correctness gone too far:
“All truth passed through three stages: First it is ridiculed. Second it is violently opposed. Third it is accepted as being self evident”.
– Arthur Schopenhauer
Once the truth about silver value becomes evident, it will probably be time to move on.
For now, watching price action can be torture.
How many of you over the past 4, 5, 10 or more years have experienced the following?
Good news: The number of Americans using food stamps in 2014 declined slightly from the previous year. So why does the 2015 Index of Culture and Opportunity say this indicator is headed in the “wrong direction”?
There are a couple of reasons. For one, the food stamp program (officially known now as the Supplemental Nutrition Assistance Program, or SNAP) is still much larger today than it was a decade ago—or, indeed, just a few years ago. In 2008, it was below 30 million. By 2013, it had hit 47.6 million.
It has since dipped a bit, as I mentioned (to 46.5 million). But for it to still be so high, despite an improving economy, is certainly troubling.