Submitted by Tyler Durden on 10/21/2015 - 14:04 "With disinflationary global conditions and sluggish pay growth, most advanced economies are likely to remain locked into low-flation, and we expect headline and core inflation rates will continue to run below target and below central bank forecasts next year. Against this backdrop, we expect further near-term easing from the PBOC, RBA, BOJ and ECB and forecast only very gradual and delayed tightening by the Fed (starting around March 2016) and BoE (starting around end- 2016)."
Submitted by Tyler Durden on 10/21/2015 - 13:35 Valeant Pharma is halted for the 4th time today, this time for news pending, as the stock has lost 40% of its value since the open...
Submitted by Tyler Durden on 10/21/2015 - 13:28 The "moar easing" hope-strewn panic-buying of the last few days is rapidly turning into regret as US equity markets tumble back into the red for the week. The biggest driver today appears to be pressure on the Healthcare sector driven by Biotechs collapse and break below a key uptrend... As one veteran trader noted... The plunge in stocks has a very 'liquidation' feel to it...
Who could have seen that coming?
Submitted by Tyler Durden on 10/21/2015 - 12:49 Currently, wage growth is the middle of its 5 year range - the last reading was just 1.63%. Positive wage growth is a good thing. Still, it is not accelerating the way it would if we were at full employment. The US labor markets are not weak but they are not as strong as some of the headline data suggests they are. If we look beneath the surface then it is clear that there are multiple explanations for the lack of growth in wage inflation...
Submitted by Tyler Durden on 10/21/2015 - 12:31 "As examples of products that were not made entirely in the US — contrary to their billing — it highlighted a sandwich bag that was produced in Thailand and a toy car that was assembled in the US with some imported parts, including a Chinese steering wheel."
Submitted by Tyler Durden on 10/21/2015 - 12:21 Most cats bounce at least once when they die, but not this one.
Submitted by Tyler Durden on 10/21/2015 - 12:11 *BIDEN SAYS HE WON'T SEEK DEMOCRATIC PRESIDENTIAL NOMINATION
*BIDEN: ATTEMPT TO UNDO OBAMA LEGACY WOULD BE `TRAGIC MISTAKE'
Submitted by Tyler Durden on 10/21/2015 - 11:57 One day Palo Alto-based medical-laboratory-services company Theranos was worth $9 billion (with its 31 year old CEo Elizabeth Holmes owning about half of this), a day later - following a crushing review of the company's business practices - not only is the company (and Holmes) worth far less, but the venture investors who gave the company hundreds of millions in cash have quickly become the "due diligence-free" laughing stocks of Silicone Valley.
Submitted by Tyler Durden on 10/21/2015 - 11:51 The arms race of devaluation is not free and has come at the cost of massive global debt expansion. The world has simply shifted private debt to the public balance sheet. The next major global crash will likely be driven by unhealthy sovereign credit rather than corporate credit. The next Lehman moment will be the financial collapse of a major developed country instead of a bank.
Submitted by Tyler Durden on 10/21/2015 - 11:11 We expect the ultimate outcome of Carl Icahn's Super PAC will be to make it easier for activists to pressure management teams into buying back even more of their shares - perhaps by granting them a tax amnesty on repatriating some of the $2 trillion in offshore cash if used for shareholder friendly activity - but then again we tend to be cynical.
Submitted by Tyler Durden on 10/21/2015 - 11:10 As a desperate Saudi Arabia taps the bond market to mitigate the SAMA drawdown while simultaneously attempting to muscle in on Moscow's Eastern European market share, Russian crude sales to China soared 42% in September. The result: for the second time this year, Russia has overtaken Saudi Arabia as the number one crude supplier to Beijing.
For many years I have written about “debt saturation” being the ultimate problem and the end game to the current system. Back in 2007 I wrote how we were facing a solvency problem rather than a liquidity problem. When the Treasury and Fed treated the 2008 debacle with more liquidity, I was adamant they were treating the wrong disease with the wrong cure. Fast forward to present day, we should soon see what the “disease” actually was, how incurable it now is and how devastating to our way of life it will be.
The following charts do not in any way say “this is it”, meaning the saturation level is here and now. They do however show you what the problem is and how we have gotten to this point in time.
It will not take decades for China to become the world’s second or primary world reserve currency as seen by Douglas Flint, group chairman of HSBC Holdings plc. But the rest of his analysis in the following article makes for a worthy read. In addition, reserve currency usage isn’t the only dynamic to consider because Chinese renminbi use in trade (not just “hanging out” as reserves of governments/central banks/sovereign wealth funds and shifted modestly as said governments conduct trade, etc.) will rise to #2 and then, #1 trade usage status in less than a decade at the rate we’re going. – Eric Dubin, Managing Editor, The News Doctors
The US Treasury Department has once again ruled out the potential use of a platinum coin as a way to break the nation’s debt ceiling in the event Congress fails to raise its limit.
Treasury Secretary Jack Lew told congressional leaders earlier this week that Congress would need to raise the nation’s borrowing cap by November 3 to avoid a potential default on obligations.
As an ultimate resolution is still unclear with less than three weeks before the “X date,” speculation has popped up once again about two popular theorized “work-arounds” — the 14th Amendment and the “trillion-dollar platinum coin.”
Two recent surveys, along with numerous other studies and data, reveal most American households to be living on the brink of catastrophe, but continuing to act in a reckless and delusionary manner. There have certainly been economic factors beyond the control of average Americans that have resulted in real median household incomes remaining stagnant for the last 36 years. The unholy alliance of mega-corporations, Wall Street and bought off corrupt politicians have gutted the nation of millions of good paying jobs under the guise of globalization, while utilizing debt, derivatives and financial schemes to enrich themselves. The malfeasance of the sociopathic privileged class does not discharge the personal responsibility of citizens for living within their means. A lack of discipline, inability to delay gratification, failure to understand basic mathematical concepts, materialistic envy, absence of critical thinking skills, and a delusionary view of the world have left the majority of Americans broke and in debt.
A fire is smoldering beneath a landfill in a densely populated suburb of St. Louis — and it has been there for five years.
Underground landfill fires, or “smoldering events” as some officials call them, aren’t rare. What makes the fire at the landfill in Bridgeton, Mo., so unusual is that it’s less than a quarter of a mile from a large deposit of nuclear waste — with no barrier in its way.
The radioactive legacy of St. Louis’ role in the World War II atomic weapons program has unleashed Cold War-style nuclear paranoia in the area, as some residents debate what kind of gas masks to buy or whether to move away.