Wednesday, January 20, 2016

"If Assets Remain Correlated, They'll Be A Depression": Ray Dalio Says QE4 Just Around The Corner

CNBC’s Andrew Ross Sorkin and Becky Quick, donning their finest goose down bubble coats to remind viewers they’re reporting live from scenic Davos, generously took some time out of their busy schedules to chat with Ray Dalio on Wednesday and unsurprisingly, the “zen master” again predicted the Fed will reverse course and embark on more QE.

Bill Gross: "Davos Fiddles While Global Markets Burn"


Canada Disappoints, Keeps Rates Unchanged As Oil Patch Burns

Stephen Poloz has spoken and the word was "hold."

Netflix Knackered - Earnings Miracle "Gains" Evaporate As FANGs Fall

Mainstream business media could not stop itself from exuberating all over Netflix' earnings last night, but apparently some sober reading overnight reminded investors that US member growth is slwoing and cash burn hit a record high. From up 10% to down 6%...NFLX is knackered and FANGs are FUBAR.

Someone Is Wrong Here

WSJ: "Economists, business executives and American workers have waited a long time for the U.S. to shake off its postrecession hangover. Robust growth often seemed right around the corner—maybe next quarter, maybe next year. Not anymore."
CBO: "CBO anticipates that the economy will expand solidly this year and next. Over the following years, CBO projects, output will grow at a more modest pace, constrained by relatively slow growth in the nation’s supply of labor. Nevertheless, in those later years, output is anticipated to grow."

"For The Sake Of Capitalism, Pepper Spray Davos"

"Please, PEPPER SPRAY ALL THE ATTENDEES OF DAVOS in order to halt the rape of taxpayers and consumers across the globe. This annual conclave is responsible for more wealth destruction and the widening disparity in GINI coefficients than any public policy."

More Bad News For The Fed: CPI Drops In December Despite Rising Shelter Prices

Great news for American Consumers - the price of the stuff you buy with stagnant incomes dropped in December by 0.1% (missing expectations of a 0.0% move). But what's good for Americans is bad news for The Fed as this is a resumption of deflation from mid-2015, and the biggest miss since January 2015. And then there is the ugly news that behind ths headline is a 3.7% surge in shelter costs YoY.

Housing Starts Miss, Permits Beat Despite Drop In Rentals

Today's batch of housing data, namely the December update of housing starts and permits, which as a reminder has a quite substantial "confidence interval" was relatively uneventful.

Another Blow For The Fed - Earnings Growth Slows To Weakest Since 2014

Real average weekly earnings rose a de minimus 0.1% MoM in December leaving 2015's YoY growth in earnings at just 1.6% - the weakest since Nov 2014. This Fed-narrative-destroying growth is less than half the rate in January 2015 when it peaked.

4 Dead, 2 Dozen Injured After Suicide Bomber Strikes Russian Embassy In Afghanistan, ISIS Reportedly Claim Responsibility

A loud explosion took place outside the Russian embassy in Afghanistan's capital of Kabul this morning according to local media. Details are lacking but it appears as if a suicide car bomber was responsible. The Deputy Minister of Interior confirms 4 killed and 2 dozen injured in suicide attack. This is the 8th suicide attack in Afghanistance since January 1st. Unconfirmed chatter is ISIS has claimed responsibility.

Goldman Posts Worst Q4 Revenue Since 2011; Average Comp Rises To $344,511

Looking at Goldman's topline, we found that in the fourth quarter the bank had generated only $7.3 billion in revenue, a 5.4% drop from a year ago, and underscoring just how difficult the environment is even for the bank that does god's work, this was the weakest Q4 revenue from Goldman since 2011.

Markets In TurmOIL: Futures Plunge, Japan Enters Bear Market, Crude And Commodity Currencies Crash

Saudi Arabia Unleashes Capital Controls: Bans Bets Against Dollar Peg

One thing policy makers should have learned after watching Greece unravel last summer is that capital controls almost always backfire. Once the market (not to mention the populace) senses panic, it's all downhill from there and make no mistake, there's blood in the water here.

Big Bank Stocks Have Been Crushed: Here’s Why

by Pam Martens and Russ Martens, Wall Street on Parade:
The conventional wisdom was that the Fed’s rate hike on December 16 of last year was going to help big bank stocks by boosting their ability to charge heftier interest rates on loans. That theory has pretty much been relegated to the dust bin of financial fairy tales along with the Fed’s prediction that the slump in oil prices would be “transitory.” Bank stocks have been cratering like it’s early 2008 all over again and oil prices can’t find a floor, having broken through $60, $50, $40 and now $30 a barrel over the past 12 months.
On top of the oil rout, which may spell corporate credit downgrades, bankruptcies, higher loan loss reserves – none of which are good for bank stocks – there are other bank risks not on the public’s radar screen.
Read More…

Annals of Disaster: Will Congress Print and Spend Directly?

from The Daily Bell:
The Citadel Is Breached: Congress Taps the Federal Reserve for Infrastructure Funding … The highway measure would be financed in part by a one-time use of Federal Reserve surplus funds and by a reduction in the 6 percent dividend that national banks receive from the Fed. . . . Banks with $10 billion or less in assets would be exempt from the cut. The Fed’s surplus capital comes from the 12 reserve banks. The highway bill would allow for a one-time draw of $19 billion from the surplus, which totaled $29.3 billion as of Nov. 25. – Web of Debt/Truthdig
Dominant Social Theme: It’s about time that the Congress took over from the Fed and began printing money and paying for things without central bank mediation.
Free-Market Analysis: Our old friend Ellen Brown has just released a triumphant article, excerpted above, that celebrates Congress’s decision to extract funds directly from the Federal Reserve and its member banks.
Read More

How Monsanto’s Glyphosate Attacks our Core Cellular Functions

by Christina Sarich, Natural Society:
Monsanto’s Round Up herbicide, containing the likely-carcinogenic glyphosate, is causing widespread mitochondrial dysfunction in cells. This is associated with a long list of degenerative disease and chronic health conditions including autism, Alzheimer’s, chronic fatigue, fibromyalgia, type 2 Diabetes, Parkinson’s, and obesity.
The mitochondria of our cells complete some of the most important functions of cellular respiration. This is how our cells eat, excrete, and repair themselves. Mitochondria are like the batteries of the cell. They create metabolic energy through ATP.  If the mitochondria, well-defined cytoplasmic organelles of the cell are damaged, the cell cannot function.
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The Last 16 Times This Happened There Was A Recession…

by Michael Snyder, The Economic Collapse Blog:

Something has just happened that has signaled a recession every single time that it has occurred since World War I.  16 times since 1919 there have been at least 8 month-over-month declines in industrial production during the preceding 12 month period, and in each of those 16 instances the U.S. economy has plunged into recession.  Now that it has happened again, will the U.S. economy beat the odds and avoid a major economic downturn?  I certainly wouldn’t count on it.  As I have written about repeatedly, there are a whole host of other numbers that are screaming that a new recession is here, and global financial markets are crumbling.  It would take a miracle of epic proportions to pull us out of this tailspin, and yet there are many people out there that are absolutely convinced that it will happen.
John Hussman is not one of them.  In his most recent weekly comment, he examined this stunning correlation between month-over-month declines in industrial production and recessions.  To me, what Hussman has presented is overwhelmingly conclusive
Read More

How Silver and Gold Can Protect Purchasing Power Today (A Canadian Prespective)

from CanadaCoinHunting:

Although we usually view our silver and gold stacking goals as a way to protect our purchasing power in the long-term, some recent economic trends in Canada have been demonstrating to us that silver and gold may assist us in protecting our purchasing power in the short-term as the Canadian Dollar continues to be devalued and its purchasing power erodes.

Global Economic Gloom: Major Companies Announce Job Cuts across Europe

by Kumaran Ira, Global Research:
Amid growing global economic gloom, including a slowdown in China and falling oil and commodity prices, major companies throughout Europe are announcing mass layoffs and job cuts.
Last Wednesday, US multinational General Electric (GE) announced plans to cut 6,500 jobs in Europe over the next two years, including 1,700 jobs in Germany, 570 in the UK, 765 in France and 1,300 in Switzerland. According to comments from the head of GE’s power division last September, this is part of a plan to squeeze out $3 billion in cost savings over five years.
GE acquired French engineering company Alstom in a €9.7 billion deal in 2014, promising to create jobs. GE France spokesman Laurent Wormser said job cuts in France will hit mainly administrative jobs in the Paris area, in human resources, public relations and the legal department.
Read More

China Crash to Trigger ‘Financial Ice Age,’ Global Economic Depression

by Lana Clements, Express:
CHINA is set to plunge the world into an economic crisis sending stock markets crashing by 75 per cent – with devastating consequences for the US and UK, a leading city expert has warned.
The sinking value of the Chinese currency is already crippling British industry as it can’t compete with China’s cheap exports.
Other Western nations are also feeling the strain. And with even more to come experts have predicted an ‘ice age’ for the world’s economies – including Britain’s.
Read More

Jack Lew: Puerto Rico is in Economic Collapse, But Things Could Get Even Worse

from Economic Policy Journal:

From a letter Treasury Secretary Jack Lew sent to congressional leadership on Friday:
Although there are many ways this crisis could escalate further, it is clear that Puerto Rico is already in the midst of an economic collapse
Puerto Rico is already in default. It is shifting funds from one creditor to pay another and has stopped payment altogether on several of its debts. As predicted, creditors are filing lawsuits. The Government Development Bank, which provides critical banking and fiscal services to the central government, only avoided depleting its liquidity by halting lending activity and sweeping in additional deposits from other Puerto Rico governmental entities. A large debt payment of $400 million is due on May 1, and a broader set of payments are due at the end of June.
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