The Money GPS
Submitted by Tyler Durden on 10/12/2015 - 16:12 Just before the first credit bubble burst, Fortress' Macro hedge fund, then known as Drawbridge as well as several other castle-related terms, peaked at just over $8 billion. Together with Phil Falcone's Harbinger, it was one of the most desired venue to work among the young hedge fund crowd. It has been downhill ever since, and unfortunately for the hedge fund run by Michael Novogratz, which reported $2.5 billion in AUM as of June 30, a number which plunged to just $1.6 billion two months later according to HSBC, as a result of a terrible year, down 13.4% YTD after losing 1.6% in 2014, and having suffered its biggest ever drawdown the macro hedge fund, which does not file an equity 13-F, is liquidating.
Submitted by Tyler Durden on 10/12/2015 - 16:03
Submitted by Tyler Durden on 10/12/2015 - 15:50 Don't look at their corporate bonds...
Submitted by Tyler Durden on 10/12/2015 - 15:07 Wwith oil volatility surging in recent months, oil producers needed to take advantage of a rally, technical or otherwise, and an oil vol lull to reestablish hedges, even if it meant at far lower prices than recent benchmarks. This is precisely what happened in the past week following one of the most torrid surges in the price of oil seen in recent years.
Submitted by Tyler Durden on 10/12/2015 - 15:05 Since the mid-July peak, when Jim Cramer warned the market's "last shred of hope was the freight index holding up," The Baltic Dry Index has been in free fall (at a time with very positive technicals). In fact, today's drop to 809 is the lowest in over 3 months and the lowest for this time of year since 1986!!
Submitted by Tyler Durden on 10/12/2015 - 14:45 Perhaps we've been doing it wrong all these years. Capitalism isn't about making money. It's about who can blow through money the fastest. When it comes to increasing shareholder value, there is, quite simply, no better way to do it.
Submitted by Tyler Durden on 10/12/2015 - 14:44 Neurosurgeon-turned-Presidential candidate Ben Carson has been under attack this week by the defenders of the Keynesian faith as he questioned fiat money and flirted with a new gold standard.
Submitted by Tyler Durden on 10/12/2015 - 14:00 With the latest swarm of mass shootings still in the headlines, and of course the ubiquitous call for gun control/prohibition, the Supreme Court's decision this week on whether it will hear a challenge to a suburban Chicago law banning firearms commonly known as assault weapons seems more critical than ever. As NBC News notes, if the court agrees to hear the case, it would cast a shadow over similar bans in seven states; but declining to take it up would boost efforts to impose such bans elsewhere.
Submitted by Tyler Durden on 10/12/2015 - 18:45 Over the years of watching the democratic process we’ve noticed something important. People tend to reject democracy, indeed, fight it tooth and nail, when it doesn’t go their way. But when it does, well, it is the tops. Most democracy-praisers are never really democrats at all but merely opportunists who make use of the power of the majority over the minority’s rights. But should the majority not wish to go along with this plan, well down with democracy - it is the enemy of higher principles in which democrats believe only sporadically, however.
Submitted by Tyler Durden on 10/12/2015 - 18:20 "In the nuclear arms race, the acronym was MAD—mutually assured destruction—which kept everything nice and tidy. Here you have the same acronym, but it’s ‘mutually assured doubt,’ because you can never be sure what the attack will be." Fortunately, the US has the most advanced operations and the NSA is "the crown creator of cyberespionage." Which is great. Unless they're spying on you...
And Here It Is
Go ahead folks, call me “insensitive.”
The shooter reloaded two handguns with ammunition from his backpack during the killings, Downing said. Harper-Mercer was “firing on people who were just lying there,” Downing said.
The shooter reloaded twice?!
Further, he didn’t have his magazines immediately at-hand (e.g. in a belt pouch or similar) and got them from his backpack?
What are we talking here — 10 seconds or so for each reload? The people in the room, who had just witnessed their friends getting shot in the head, sat still for long enough to allow this clownface to reload twice?
It gets better. What I have long maintained is that these shootings are about control and as soon as challenged by anyone who gets aggressive the shooter tends to kill themselves because control is the entire point.
This is why the shooters go to “Gun Free Zones” to commit their horrific act — they know that law-abiding citizens will not be carrying arms suitable for attempting interruption of their control. It’s also why the mall shooter who was confronted by an armed citizen retreated into a side hallway and shot himself; he lost control, even though the citizen never got a shot off because there were too many other people in the area he might have hit by accident.
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Those not in the labor force hit a record number in the last month. While the mainstream press tries to spin it as a retirement trend, the reality is most Americans are too broke to retire. The Atlanta Fed added some color to explain the big decline in labor force participation. As it turns out, the decline is coming from structurally problematic areas. We have many that are in the prime-age category (25 to 54 years of age) that simply say they don’t want a job. There is also a big jump in those on disability beyond normal population growth. And finally, we have a larger share of younger Americans going to college and loading up on mega amounts of student debt. Another contributing factor that is nicely left out is that we have many older Americans continuing to work into old age because as we have mentioned, many older Americans are too broke to retire. Let us look at the research more closely.
Pundits and politicians are already looking for a convenient explanation for the twin Middle East disasters of the rise of Islamic State and the humanitarian catastrophe in Syria. The genuine answer is politically unpalatable, because the primary cause of both calamities is U.S. war and covert operations in the Middle East, followed by the abdication of U.S. power and responsibility for Syria policy to Saudi Arabia and other Sunni allies.
The emergence of a new state always involves a complex of factors. But over the past three decades, U.S. covert operations and war have entered repeatedly and powerfully into the chain of causality leading to Islamic State’s present position.
Dear Friend of GATA and Gold:
MarketWatch columnist Brett Arends may win this year’s award for the most disinformation in financial commentary about gold. His October 9 column, “Here’s the Chart Gold Bugs Don’t Want You to See” —
— is misleading from top to bottom.
In the first place, while the gold business has its share of dishonorable people, the gold business is small and its dishonorable people are outnumbered a thousand to one by dishonorable people in government, central banking, and the stock, bond, and real estate businesses. And whatever a few “gold bugs” are hiding from the markets, it is trivial compared to what investment banks and central banks are hiding, about which Arends has yet to show any curiosity.
Decisions, decisions. Many Americans will have to make a big one in the next 60 days or so. How you decide will affect both your health and your wallet. Hospital management and doctors are seeing significant differences in the trends of patient care and are moving to adapt. Some of the changes they implement are going to create significant economic impacts on households and local communities.
In this week’s letter we’re going to take another look at healthcare trends. Healthcare is roughly 20% of the economy and every bit as impactful as the energy and food sectors.
Two years ago this week I wrote “” with my friend and personal physician, Dr. Mike Roizen of the Cleveland Clinic. That letter was an attempt to calmly discuss the Obamacare launch and the changes it would bring. Rereading it now, I see that we missed some points but were on target with others.
You really can’t make this stuff up…
A prominent Black Lives Matter Activist named DeRay McKesson, a man who helped start the looting in both Ferguson and Baltimore, has been rewarded for his criminal behavior by Yale University.
The prestigious Ivy League school brought the criminal in to teach a two-day course on…wait for it… “The ethics of looting.”
In his class, the activist has students reading from an essay called “In Defense of Looting,” written at the height of the riots in Ferguson, Missouri.
As regular readers are no doubt aware, a giant explosion at a chemical plant in the Chinese port of Tianjin in August made international headlines and became a source of controversy and social unrest after citizens began to wonder if the Communist party was trying to cover up rampant corruption that might have allowed the catastrophe to happen.
Once the environmental effects of the chemical dispersion (mass fish die-offs and cyanide rain) became apparent, the world became fascinated with explosions at Chinese chemical factories which, if the last month or so is any guide, happen all the time.
The latest ditty that has the media all in a tizzy is Ben Carson’s statement that if the Germans had not surrendered their firearms a few years earlier The Holocaust probably wouldn’t have happened — or would have been far less severe.
The number of people who pounced on this is a sad reflection of what our nation and logic — or lack thereof, has become.
The usual nonsense has been trotted out — that Carson’s remarks disrespected those who died in the Holocaust, and particularly in the Warsaw Ghetto.
The next wave of the greatest financial crisis may soon be upon us.
When the music stops, and loans everywhere on cheap and easy credit are called, far too many nations, businesses and individuals will be suddenly and violently unable to repay their debts — particularly in the developing world.
The results are likely to be catastrophic, and the weight of the bad debts may well be enough take down the rest of the world with it. This is no small problem, and it is not clear if there is a solution.
London Guardian writer Will Hutton issues a stark warning that “the world economic order is collapsing and this time there seems no way out.”
Being a former college basketball coach, I marvel at the skill of a good strategist who can carry out a game plan. Vladimir Putin would have been a great college basketball coach, a masterful poker player, great chess player, a top used car salesman and he is an excellent leader of his country when it comes to foreign policy. Putin has made the Federal Reserve, Wall Street and our government look amateurish.
If it wasn’t for the fact that Putin has the potential to be one of the most despotic figures in all of history, I would be a fan of his cunning and his ability to carry out an agenda on multiple fronts with precision and skill.
However, there is one group that Putin does not outfox, out-strategize and out maneuver; that would be the forces controlling the Bank of International Settlement (BIS).
The mystery of the Obama administration’s foreign policy has always been whether President Barack Obama has two separate strategies: one “above the table” waving his arms and talking tough like Official Washington’s arm-chair warriors do – and another “below the table” where he behaves as a pragmatic realist, playing footsy with foreign adversaries.
From the start, Obama surrounded himself with many hawkish advisers – such as Defense Secretary Robert Gates, Secretary of State Hillary Clinton, Gen. David Petraeus, National Security Council aide Samantha Power, etc. – and mostly read the scripts that they wrote for him. But then he tended to drag his feet or fold his arms when it came to acting on their warmongering ideas.
Egon von Greyerz: “Irresponsible governments and central banks in the last 100 years have created a disaster that will lead to an economic collapse of a magnitude which the world has never seen before…
“Before the coming debacle is over, we could see world GDP decline by 20 percent or more as well as a decline in the world population of one to two billion people.
How Could Governments Allow Such A Disaster To Take Place?
To many people this will seem like an unbelievable forecast. People will wonder: How is this possible? How could governments allow such a disaster to take place? It’s not that the governments won’t try to stop it; the dilemma is that they will be totally powerless.