If you have a bank account anywhere in Europe, you need to read this article. On January 1st, 2016, a new bail-in system will go into effect for all European banks. This new system is based on the Cyprus bank bail-ins that we witnessed a few years ago. If you will remember, money was grabbed from anyone that had more than 100,000 euros in their bank accounts in order to bail out the banks. Now the exact same principles that were used in Cyprus are going to apply to all of Europe. And with the entire global financial system teetering on the brink of chaos, that is not good news for those that have large amounts of money stashed in shaky European banks.
Submitted by Tyler Durden on 12/29/2015 - 09:26 No year is ever easy to predict, if only because if it were, that would take all the fun out of life. But still, predictions for 2016 look quite a bit easier than other years. This is because a whole bunch of irreversible things happened in 2015 that were not recognized for what they are, either intentionally or by ‘accident’. Things that will therefore now be forced to play out in 2016, when denial will no longer be an available option. Simply put, 2016 will be the year when a lot of ‘underlying wealth’ evaporates.
Submitted by Tyler Durden on 12/29/2015 - 07:53
Submitted by Tyler Durden on 12/29/2015 - 09:08 While it is two months delayed (and home sales have tumbled since), Case-Shiller reports that home prices rose 0.84% MoM in October, beating expectations and the biggest monthly rise since March. While the YoY gains barely missed expectations at +5.54%, Miami, Tampa, and San Francisco all saw the biggest gains as Chicago, Cleveland, and San Diego saw the biggest drops in home prices.
Submitted by Tyler Durden on 12/29/2015 - 08:56 From stocks (Dow up 460 points from pre-Christmas lows) and VIX (futures getting whacked), to FX (total craziness in EUR and GBP); and from Bonds (2Y underperforming this morning!) to Commodities (Copper soaring almost 3%, Crude spiking), it appears markets have gone nuts this morning...
Submitted by Tyler Durden on 12/29/2015 - 08:46 The S&P 500 closed at 2052 on November 18,2014. That was 405 days ago, and despite the rips and dips in the interim the broad market average has gone nowhere.
Submitted by Tyler Durden on 12/29/2015 - 08:25 While the straws have been building on the camel's back of Apple's "no brainer" status over the past few months, today's news from DigiTimes appears to be the most damning yet on the 'peak Apple' phenomenon. Apple share are fading off early market highs as demand for iPhone 6s and iPhone 6s Plus appear to have slowed down recently, shipments of iPhone devices from production lines in the fourth quarter of 2015 are likely to be 5-10% lower than originally expected, according to Taiwan-based supply chain makers.
Submitted by Tyler Durden on 12/29/2015 - 08:15 "You cannot go anywhere by supporting a regime that has mercilessly killed 400,000 innocent people with conventional and chemical weapons."
"I believe that the treachery network dealing a blow to our country's unity will learn a lesson it deserves."
Submitted by Tyler Durden on 12/29/2015 - 06:58 Santa Claus is cutting it close: after stocks closed down yesterday, and just fractionally red for the year, the jolly old gift-giver (who now has activist investors breathing down his neck) has just three trading days to push if not stocks then the market into the green for the year. And so far, so good, with US equity futures rising by 8 points or 0.4%, on the back of some modest renewed Dollar strength but mostly on oil, which after yesterday's big slide, has managed to stem the decline and is up fractionally, just under $37, along with other commodities if not copper, which falls for second day.
Submitted by Tyler Durden on 12/29/2015 - 01:53 Following yesterday's budget (deficit) and the 'sacrifice-the-people's-comfort-for-the-death-of-US-Shale' plan that we detailed here, it appears market concerns about Saudi Arabia's forward-looking health are rising. As Bloomberg reports, USDSAR 12-month forwards jumped 250pts (the most since December 2007) to 725bps (the highest level since March 1999) implying expectations of a looming de-pegged, devaluation. Perhaps just as worrying is this is the same pattern that played out in August as Yuan weakness sparked HIBOR stress, leading to SAR forward weakness and then US equity market collapse.
Submitted by Tyler Durden on 12/28/2015 - 23:49
Submitted by Tyler Durden on 12/28/2015 - 22:25 James Madison, the father of the Constitution, put it best: “Take alarm,” he warned, “at the first experiment with liberties.” Anyone with even a casual knowledge about current events knows that the first experiment on our freedoms happened long ago. Worse, we have not heeded the warnings of Madison and those like him who understood that if you give the government an inch, they will take a mile. Unfortunately, the government has not only taken a mile, they have taken mile after mile after mile after mile with seemingly no end in sight for their power grabs. All of the signs point to something nasty up ahead.
Submitted by Tyler Durden on 12/28/2015 - 21:50 "We encourage the higherst leadership of the country to inform the people correctly without sugar coating the truth about Chinese invasion of our Exclusive Economis Zone. How can the people unite and pick up the cudgels and fight alongside of you if you hide the truth from us?"
Submitted by Tyler Durden on 12/28/2015 - 21:15
To begin, we need to understand that political correctness is not about being nice. It’s not simply a social issue, or a subset of the culture wars. It’s not about politeness, or inclusiveness, or good manners. It’s not about being respectful toward your fellow humans, and it’s not about being sensitive or caring or avoiding hurt feelings and unpleasant slurs. But what exactly is PC? Political correctness is the conscious, designed manipulation of language intended to change the way people speak, write, think, feel, and act, in furtherance of an agenda. PC is best understood as propaganda.
Submitted by Tyler Durden on 12/28/2015 - 20:40 2015 was the year of considerable FX drawdown as desperate EM central banks attempted to rescue themselves from reality. As Barry Eichengreen noted, "Intervening to support an exchange rate that’s fundamentally overvalued is a fool’s game and a no-win situation, akin to a sovereign attempting to sustain an unsustainable debt burden rather than yielding to inevitable restructuring."
During pre-election years, like 2015, each administration tries hard to impress voters, either via stimuli or copious amounts of lipstick to make even the ugliest pig (aka, the economy) look pretty. Historically, pre-election years sport the best performance numbers of the four-year presidential election year cycle.
On average (based on data going back to 1933), the Dow Jones Industrial Average gains 10.40% during pre-election years.
Not this year.
Amid grief and outrage over the killings of two unarmed African Americans in Chicago, a year-end report from the Mapping Police Violence research project says police nationwide killed at least 1,152 people in 2015. In 14 cities, every single police victim was African-American. And across the country, police killings had little correlation with crime rates and population size. We discuss the findings with Sam Sinyangwe, a statistician who worked on the Mapping Police Violence project.
The Yurok Tribe, the largest Native American tribe in California, will join other peoples such as those from Russia, Italy, and Germany in saying NO to genetically modified organisms. The tribe has just announced that it is implementing a ban on all GM crops and GM animals. 
A committee meant to review the Yurok Tribe Genetically Engineered Organism (GEO) Ordinance, which was first allowed public comment, has now been enacted this December, 2015.