Wednesday, December 30, 2015

The Fed Just Gave The Treasury A Record $19 Billion Holiday Bonus...

Wait, isn't direct funding of the Treasury against US policy: after all, hasn't Bernanke been on the record countless times repeating that the Fed does not monetize the US deficit? Not anymore...

Stocks Flash Crash Into Close As Emerging Market, Commodity Carnage Spreads

Swiss Army Chief Warns Of Social Unrest, Calls Upon Citizens To Arm Themselves

Swiss army chief André Blattmann warned, in a Swiss newspaper article on Sunday, the risks of social unrest in Europe are soaring. Recalling the experience of 1939/1945, Blattman fears the increasing aggression in public discourse is an explosively hazardous situation, and advises the Swiss people to arm themselves and warns that the basis for Swiss prosperity is "being called into question."

Caught On Tape: Saudi Warplanes Vaporize Coca Cola Plant In Yemen

The Oligarch Tax Bracket: How The Tax Rate For The Wealthiest 400 Americans Plunged From 27% To 17%

Operating largely out of public view - in tax court, through arcane legislative provisions and in private negotiations with the Internal Revenue Service - the wealthy have used their influence to steadily whittle away at the government’s ability to tax them. The effect has been to create a kind of private tax system, catering to only several thousand Americans. This is precisely what Obama will be remembered for by history, bailing out and protecting the 0.01%, at the expense of everyone else.

The Next Time Your Financial Advisor Tells You To Buy Stocks, Show Them This Chart

Perhaps mom and pop investors should show the following chart to their financial advisors, who directly or indirectly work for these institutions, and ask them: why should they be buying, when the counterparty they are buying from is, most likely, this very same financial advisor?

This Is The Best Investment Of 2015... Just Don't Adjust For Hyperinflation

It's that time of year again. When hindsight is 20/20 and coulda/woulda/shoulda gives way to reality. With the US equity market barely able to keep its head above green water, a look around the world shows investors could have done a lot better... (or not)

The terrorists won the day the "patriot act" was passed...

Terrorists Win? Brussels Mayor Cancels New Year's Eve Fireworks Over Threat

Brussels Mayor Yvan Mayeur has decided to cancel the New Year's fireworks display, after receiving the advice of Belgium's coordinating unit for threat analysis.

Obama's Hawaii Vacation: $8 Million; Secret Service: $317k; Nailing A 40-Foot Chip: Priceless

Thanks to the deep digging from Judicial Watch, we now know that President Obama's Christmas 2013 vacation to Hawaii cost taxpayers a handy $8.1 million. The itinerary, we are sure, was very similar to this year's golfing (and shave ice) extravaganza, which explains why, the known total expense to the American taxpayers thus far for all Obama travel is now $70,880,035.78. Well, it's only fair right?

"Coiled Spring" Stock Market Likely To Disappoint In 2016

2015's stock market range (from high to low) is among the narrowest since World War II. This 'compression' has led the horde of asset-gatherers and commission-takers to suggest that stocks are a "coiled spring" ready to burst higher from this newly-formed permanent plateau. However, as S&P Capital IQ's Sam Stoval notes, that is the exact opposite of what to expect based on history. In fact a narrow range year is typically followed by a low return year, not a high return year.

The New Cartel Running The Oil Sector

As oil prices wallow near multi-year lows, it’s becoming increasingly clear that the new cartel controlling oil prices is not OPEC but world credit markets. From Saudi Arabia’s record $100 billion deficit to shale oil’s continuing reliance on cheap credit funding, it’s clear that no major oil producer or company in the world right now is economically self-sufficient based on oil revenues alone. This situation has left the flow of oil and the decision on when to stop pumping the increasingly tarnished black gold in the hands of banks rather than oil men.

Unicorn Mauling: Fidelity Slashes Valuation Of Startup Superstar Uber By 7.5%

In a move that will surely raise even more eyebrows if not launch a shockwave across Palo Alto just yet, Fidelity Investments said in its monthly holdings report that it has slashed the valuations of even more unicorns, starting with the biggest one of all, Uber, when it lowered the value of its stake in the company's Series D shares by 7.5% from Oct. 30-Nov. 30, while adding more pain to Dropbox investors when it lowered its value of the cloud service company by another -2.2%.

Puerto Rico To Default On Some Bonds January 1 - Live Feed

“To make a total payment will be almost impossible. If a partial payment is made: what bonds should we pay? It is an assessment that is being done. It is highly unlikely that there will not be default, in whole or partially.”

Downright Ugly 7 Year Auction Concludes Treasury Sales For 2015

First thing this morning, when previewing the key event of the day, namely today's auction of $29 billion in 7 Year Treasurys, we said that "with the issue not anywhere close to trading "special" in repo, the risk for a big tail - like in yesterday's 5Y auction - is high." And, just like yesterday, when we again correctly predicted the tail on the 5Year (following the very strong squeeze into the 2Year the day before) moments ago we got just what we expected when the Treasury announced that it had sold the $29 billion of Cusip N30 at a yield of 2.161%, the highest since September 2014, but more importantly tailing 0.5 bps to the 2.156% When Issued.

Art Cashin's 2015 Summary: From Caitlyn Jenner To Confederate Flags

Two Thousand Fifteen had high hopes at the start, but a sharp selloff in August nearly ripped us apart; Then Draghi and Yellen swore that hope hadn't departed, so we stuttered and sputtered to just get back where we started.... Hoverboards were this season's really, really hot toy; And Bruce Jenner's now Caitlyn - he's no longer a boy

Not The Onion: US Government Is Taking Credit For Bringing Peace To Syria

State Department spokesperson John Kirby is raising eyebrows after he released a reap of 2015 “success stories” in which he credits the United States for bringing “peace” and “security” to Syria and “stepping up” to help the country’s people at a difficult time. Using the hashtag #2015in5words to highlight last year’s wins, Kirby boasted: “Bringing Peace, Security to Syria.”

The Bail-Ins Are Back! Portugal Slaps Senior Bank Bondholders With €2 Billion Loss

If you are an institutional investor and you bought Novo Banco bonds, you just had a bad morning...

The Cultural Contradictions That Have Crippled The Great American Middle Class

Conventional explorations of why the middle class is shrinking focus on economic issues such as the decline of unions and manufacturing, the increasing premiums paid to the highest-paid workers and the rising costs of higher education and healthcare. All of these factors have a role, but few comment on the non-economic factors, specifically the values that underpin the accumulation of capital that is the one essential project of middle class households.

Brazilian Real Crashes Most In 4 Years As Hope Fades

Following recent strength on the heels of hope for a new finance minister, news that Ruosseff has sent the minimum-wage-hike Bill to Congress appears to have crushed the hype of any fiscal rectitude and sent Real tumbling. Down over 4% - the most since September 2011 - BRL is back above 4.00 per USD, giving up all the recent gains.

Goldman Admits It Was Wrong Forecasting 3% Yields For 2015 As It Forecasts A 3% Yield For 2016

If at first you don't succeed, try, try, keep trying again and again. That appears to be the mantra of Goldman's credit strategists.

UK Revolts Against "Pampered Student Emperors"

While stories of micro-aggression and "safe spaces" abound in America, it appears the growth so-called "little emperors" throughout the world's universities is on the rise. As Harry Mount rages in the following Telegraph op-ed, the babies of the late 90s – mollycoddled by their parents, spoon-fed by their teachers, indulged by society – have now reached university and "It's time to say No to our pampered student emperors."

IMF Chief Pours Cold Water On Optimistic Yellen, Says Growth "Will Be Disappointing"

In a guest article for Handelsblatt, Christine Lagarde warns that 2016 is likely to be a disappointment as the Fed hike and China's transition to a consumer-driven economy continue to weigh on global growth prospects. Sorry Janet, it looks like the IMF doesn't agree with your justification for liftoff.


No comments:

Post a Comment