Wednesday, October 21, 2015

If Ackman Is About To Blow Up, This Is What Plunges Next

Citi Expects Imminent Easing From Central Banks Of China, Australia, Japan And Europe

"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)."

VRX Halted Down 40%, Issues Statement, Says "Citron's Report Is Erroneous"

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...

Stocks Slammed Into Red For Week As Biotechs Break Key Support

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...

Mitchell Feierstein: All Ponzi Schemes And Bubbles End The Same Way, Crashing

from X22Report Spotlight:

NASA Warns: 99% Chance Of At Least A 5.0 Quake Hitting LA Within 30 Months

"We all need to be prepared... That's not new for LA."

Stocks Catch Down To Bonds' Reality

Who could have seen that coming?

O Wage Inflation, Where Art Thou?

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...

WalMart Lied: Must Remove "Made In USA" Logos From Products Made In China, Thailand

"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."

Spot The Odd One Out

Bonds ain't buying it...

If Caterpillar's Data Is Right, This Is A Global Industrial Depression

Most cats bounce at least once when they die, but not this one.

Joe Biden Announces He Will Not Run For President, "Window Has Closed" - Live Feed


Embattled Theranos Founder Elizabeth Holmes Makes First Public Appearance Since Crushing WSJ Report

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.

We Didn't "Financially Engineer" Our Way Out Of The Great Depression, We Won A World War

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.

Carl Icahn Launches Super PAC To Promote "No Brainer" Tax Reform, Combat Tax Inversions

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.

New Oil Order: Russia Again Tops Saudi Arabia As China's Largest Crude Supplier

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. 

A “Saturated World”

by Bill Holter, JS Mineset
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.
Read More…

China’s Currency To Essentially Become World’s Great Currency

from The News Doctors:

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
Read More

Treasury again rules out the ‘trillion-dollar coin’ option to avert the debt ceiling

from Business Insider:

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.”
Read More


from The Burning Platform:

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.
Read More


from TruNews:

Underground Fire Burns Near RADIOACTIVE WASTE Dump in St. Louis, While Officials Squabble

from LA Times:

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.
Read More

Undermining Property Rights In San Francisco

We have ceased to live in a free market economy a long time ago. The only sector of the economy that has managed to remain relatively free in many ways is the technology sector, because it innovates so rapidly that it tends to stay a step or two ahead of politicians and the oligarchies giving them their orders. They simply cannot catch up quickly enough with regulating all these innovations to death. Lately technology has begun to invade the turf of a number of established service businesses... and that appears to be a problem for the crony 'capitalist' crowd.


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