Submitted by Tyler Durden on 10/07/2015 - 11:27 And now the real shocker: there is over US$100bn in gross financial exposure to Glencore. From BofA: "We estimate the financial system's exposure to Glencore at over US$100bn, and believe a significant majority is unsecured. The group's strong reputation meant that the buildup of these exposures went largely without comment. However, the recent widening in GLEN debt spreads indicates the exposure is now coming into investor focus."
As the days go by, more and more hard data continues to point to one thing: silver supply has never been tighter. It doesn’t matter where you point to, the story’s the same: strong demand, and diminishing supply. There are a variety of factors contributing to this, but some are now simply too much for the bankers to overcome, and the evidence is overwhelming.
Take for instance, the dwindling numbers at the Comex. These warehouses continue to show remarkable ‘churn’, as somewhere between 3 to 5 million ounces(or more) have continued to move in and out of Comex warehouses practically all year long. It has had a brutal effect, year-to-date, on silver numbers, particularly in the registered(for sale) numbers. One look at this long-term chart will prove it, as well as give it perspective:
Submitted by Tyler Durden on 10/07/2015 - 13:25 Brazil, which is caught in a vicious recessionary spiral which is only set to get much worse before it gets better, tried to obtain some much needed cash when earlier today it conducted an auction to sell exploration rights for of its oil and gas. It was, in short, a disaster. According to Reuters, by midday Brazil had only sold 17 of 119 blocks offered. A total of 36 companies from 17 countries - including Petrobras, ExxonMobil Corp, BP Plc and Royal Dutch Shell Plc - registered for the auction. None of the majors have bid so far. Only a handful of sold blocks were even contested.
All discussions with regard to gun ownership begin and end with the Second Amendment. The views of President Obama on this issue are irrelevant to any discussion about private gun ownership.
A well regulated militia, being necessary to the security of a free state, the right of the people to keep and bear arms, shall not be infringed.
The second part of the Second Amendment speaks for itself when the Constitution says: ” The right of the people to keep and bear arms, shall not be infringed.” This is the final word on the subject as the Constitution has clearly spoken. Obama’s rants and illegal Executive
In the wake of the tragic shooting that occurred at the Umpqua Community College in Oregon, the gun grabbers have set their sights on a familiar target. That is, anyone who doesn’t toe the Progressive line. In this case it happens to be the Sheriff of Douglas County, who had the audacity to have a controversial opinion. Gather your pitchforks everybody, there’s a monster in our midst.
Submitted by Tyler Durden on 10/07/2015 - 13:12 If yesterday's 3Year auction was solid across the board, then today's sale of $21 billion in 10Y was an all around show-stopper,
Submitted by Tyler Durden on 10/07/2015 - 13:00 If anarcho-capitalists should move to Somalia, then socialists - especially, “social democrats” - should move to Venezuela. The country is a complete disaster. Economic chaos, food rationing and a complete break down of the social order aren’t lessons of a misguided dictatorship of the proletariat, but a fundamental reality of socialism, whether democratic or not.
KGB-Connected Russian "Gangs" Tried To Sell Nuclear Bombs To ISIS In Moldovan Nightclub, AP ImaginesSubmitted by Tyler Durden on 10/07/2015 - 12:41 The colonel "got away", and now his "partner" is out of jail...
Submitted by Tyler Durden on 10/07/2015 - 12:24 There is little that is of greater importance to systemic confidence than faith in the abilities of central banks. Thus, when even the mainstream financial press begins to publish articles about a potential “loss of credibility” faced by these august institutions, one must begin to pay close attention.
Submitted by Tyler Durden on 10/07/2015 - 12:01 Mortgage applications rose 25.5% week-over-week - the 2nd largest surge since 2009 - to the highest level (for this time of year) since 2012. Both refis and purchases soared, and exuberance immediatoley extrapolated this surge as 'proving' the housing recovery is healthy. However, as MBA admits, "many applications were filed prior to the TILA-RESPA regulatory change," strongly suggesting this is anything but sustainable.
Submitted by Tyler Durden on 10/07/2015 - 11:44 A popular view among some market participants is that the Fed is unlikely to hike in a presidential election year. While many economic and market factors may influence when and how often the Fed hikes in the upcoming months, BofAML does not expect the timing of US elections to play any meaningful role in the Fed’s policy deliberations.
Submitted by Tyler Durden on 10/07/2015 - 11:15 A huge build in crude inventories started the ball rolling but a sudden "spoofer from above" sent US equities slumping this morning. The Dow and S&P have now joined the Nasdaq in the red...
Submitted by Tyler Durden on 10/07/2015 - 11:06 The takeaway is that to the extent the overnight relief rally in the ringgit and then subsequently in other Asia EM "assets" was catalyzed by a "better" than expected read on the situation in China, the market may be making a mistake because just like Chinese GDP prints, the headline figure on the PBoC's store of FX reserves should be taken with a grain (or perhaps a whole shaker) of salt when it comes to drawing conclusions about the pace of outflows from the world's second most important economy.
Today’s “genius du jour” is Jeffrey Gundlach – who has been marketed as the new “Bond King,” for simply having been lucky enough to be the “least dirty shirt” amongst a sea of mediocre portfolio managers. Like Warren Buffett, who “perfectly timed” the start of his career with a multi-decade equity bull market; or Donald Trump, whose gluttonous affinity for “1%” real estate coincided with the Fed’s cancerous foray into unprecedented wealth disparity, Gundlach was one of many fixed income “portfolio managers” lucky enough to be running bond funds when the Fed decided to not only take interest rates to zero, but keep them there – likely, forever.
Given that I’m at the gym every morning, and CNBC is constantly interviewing him, I’ve come to get a feel of his views. That said, take heed of these simple Wall Street truisms before taking what he – or any portfolio manager or “analyst,” for that matter – says to heed. For one, from a marketing perspective, it’s imperative for bond managers to purport bearishness – as weak economies tend to “yield” increased bond buying. Second, when one owns so many bonds, the last thing they want to do is publicly speak of an expectation and/or need for higher rates. Which is probably why he has, like myself, called for the Fed to hold off its planned (or so we’re told) “lift-off.” That said, he’s said plenty of intelligent things to back up his contention. In other words, he’s no dummy about the economy. He knows it’s collapsing – which fortunately, is good for his business. At least, until “bond vigilantes” inevitably show up and sell bonds en masse, fearing the hyperinflation Central banksalways foster.
Submitted by Tyler Durden on 10/07/2015 - 10:52
Submitted by Tyler Durden on 10/07/2015 - 10:38 In the face of a modest inventory drawdown (reported last night by API), DOE reports a major 3.073 million barrel inventory build (for the 2nd week in a row). As EIA reports, oil stocks remain at their highest in at least 80 years. Rubbing salt into the wounds, Crude production rose 0.84% WoW, the biggest surge in 5 months. WTI Crude's initial reaction is a significant sell-off...
Submitted by Tyler Durden on 10/07/2015 - 10:29
Submitted by Tyler Durden on 10/07/2015 - 10:15 Saudi Arabia’s competitors from the Gulf cut their prices last month, forcing the largest OPEC producer to follow suit. Although there was little expectation of a shift in strategy, the price cut highlights Saudi Arabia’s determination to continue to pursue market share by keeping production volumes elevated. On top of that, October could be a crucial month for struggling drillers. With drillers undergoing credit redeterminations, October could see a wave of debt restructuring and cuts to credit lines, potentially forcing deeper cuts in the shale patch.
Submitted by Tyler Durden on 10/07/2015 - 09:55 As the following org chart of Glencore shows, the company - at least on the surface - appears to be far "simpler" than Enron was in the days preceding its biggest, for the time, and quite unexpected, bankruptcy.
Submitted by Tyler Durden on 10/07/2015 - 09:50 For the first time since Spetember 2011, the Nasdaq Biotech Index has triggered a "death cross" as its 50-day moving average crosses below its 200-day average...
Submitted by Tyler Durden on 10/07/2015 - 09:40 This is what happens when the corporate buyback bonanza bursts. If the CFO loved it at $116 - which is Monsanto's average stock buyback stock over the past 5 years - he'll love it at $84.
Submitted by Tyler Durden on 10/07/2015 - 09:22 Simply put, job growth is not keeping pace with population growth--specifically, the growth of the labor force which is generally defined as the population between the ages of 18 and 64. So what happens to the economy as millions of people never acquire the habits of hard work or lose them due to chronic joblessness?
Submitted by Tyler Durden on 10/07/2015 - 09:12 Amid relatively heavy volume, it appears 9ET was the appropriate time to dump paper gold and silver this morning...
Submitted by Tyler Durden on 10/07/2015 - 08:55 As the WSJ has kindly offered, anyone who wishes to, can ask Ben Bernanke questions about his "courage" to print $3 trillion and make the rich richer. Just make sure to tag your tweet with #FedWSJPro.
Submitted by Tyler Durden on 10/07/2015 - 08:51 The Western hypocrisy and outright panic is accelerating, as Washington is simply bewildered about what to do next in Syria. Meanwhile, the Russian military has, in the space of a week, cleared the way for an Iranian gound invasion on behalf of Assad. Once that's finished, the entire campaign will shift to Iraq, where the US will either need to confront Russia or simply pack up and leave.
Q3 Earnings Bloodbath Continues With Terrible Monsanto Results: Company Fires 2,600 As It Boosts BuybackSubmitted by Tyler Durden on 10/07/2015 - 08:29 It had been quite a downcast start to the third quarter earnings season following very disappointing earnings from Illumina, Adobe and Yum Brand. Then Moments ago agri-giant Monsanto made it four out of four when it reported absolutely terrible results, cut guidance, but at least announced a new $3 billion stock buyback, one that will soak up all the company's net cash flow. The cost of all of this: some 2,600 worker terminations.
Submitted by Tyler Durden on 10/07/2015 - 08:12 What most investors do not realize currently is they could go to "cash" today and in five years will likely be better off. However, since making such a suggestion is strictly "taboo" because one might "miss some upside," it becomes extremely important for measures to be put into place to protect investment capital from the coming downturn. Of course, since Wall Street does not make fees on investors holding cash, maybe there is another reason they are so adamant that you remain invested all the time.
Submitted by Tyler Durden on 10/07/2015 - 07:48 "We are still in a very cautious environment for emerging-market currencies and unless there is a sharp turnaround in commodity prices or capital flows, I still think there’s going to be pressure on the ringgit and the rupiah."
Submitted by Tyler Durden on 10/07/2015 - 06:56 The big overnight story was certainly the BOJ's announcement at 11pm Eastern whether or not the Japanese central bank would boost QE. This is how we previewed it: "now all eyes to the BOJ when tonight around 11pm Eastern, Japan's central bank is expected do and say precisely... nothing." Sure enough, nothing is precisely what the BOJ delivered, leading to a big, if brief tumble in the USDJPY suggesting many were expecting at least a little tip from the BOJ.
What would you do if the power grid went down and never came back up? One of these days, and it could be a lot sooner than most people think, we will all wake up in a country without electricity. And considering how utterly dependent we have become on technology, that is a very frightening scenario to consider. How would Americans react if nothing worked? Just imagine a world where everything electronic is dead. I am talking about lights, cell phones, computers, televisions, ATMs, heating and cooling systems, credit card readers, gas pumps, cash registers, refrigerators, hospital equipment etc. When the power goes out for a few hours, that can be a major inconvenience, but what if it went out all over the nation and it didn’t come back on for months or even years? This is one of the greatest potential threats that the United States is facing, and yet very few people are even talking about it.
A devastating new report commissioned by the National Cancer Institute reveals that our 40-year long ‘War on Cancer’ has been waged against a vastly misunderstood ‘enemy,’ that in many cases represented no threat to human health whatsoever.
If you have been following our advocacy work on cancer, particularly in connection with the dark side of breast cancer awareness month, you know that we have been calling for the complete reclassification of some types of ‘breast cancer’ as benign lesions, e.g. ductal carcinoma in situ (DCIS), as well as pointing out repeatedly that x-ray based breast screenings are not only highly carcinogenic but are also causing an epidemic of “overdiagnosis” and “overtreatment” in US women, with an estimated 1.3 million cases in the past 30 years alone.
The mainstream is finally waking up to the future of the American Dream: downward mobility for all but the top 10% of households. A recent Atlantic article fleshed out the zeitgeist with survey data that suggests the Great Middle Class/Nouveau Proletariat is also waking up to a future of downward mobility: The Downsizing of the American Dream: People used to believe they would someday move on up in the world. Now they’re more concerned with just holding on to what they have.
I dug into the financial and social realities of what it takes to be middle class in today’s economy: Are You Really Middle Class?
The reality is that the middle class has been reduced to the sliver just below the top 5%–if we use the standards of the prosperous 1960s as baseline.