Friday, January 22, 2016

"Is The Bottom In?" - BofA Answers The Question Everyone Is Asking

The one question on everyone's lips, is whether aside from a "interim low", was Wednesday's flush the market's lows for the foreseeable future, and certainly for the first quarter.Bank of America responds.

Kuroda's Comments Stall Central Bank Stimulus Rally

Despite promising more QQE if necessary (having said that more asset purchases threaten the nation's central bank's balance sheet just a week ago), it appears BoJ Governor Kuroda's comments on inflation expectations and oil prices have stalled the exuberant "global stimulus" rally (albeit briefly).

Oil Spikes As Citi Calls It "Trade Of The Year" Even As OPEC Oil Basket Price Near Lowest On Record

With all eyes on the overnight spike in crude oil prices (up 5% and back over $30, this must be the bottom right?), OPEC remains far from impressed with its basket price hovering at (or near) record low levels at $22.48. In fact, the collapse of the OPEC basket price in the last 3 weeks has been the fastest drop since October 2008. However, no matter the chaos occurring various oil instruments (OIL 40% premium to NAV), Citi has decided this is it and dubbed being long oil from here "the trade of the year."

American Depress

AMEX is crashing, down over 9%, following lower revenues and weak guidance...


from Geopolitics:
A leaked Russian Ministry of Defense Report indicated that the two US Navy boats captured by the Iranians some time ago were actually carrying a high-ranking ISIS commander, and the reported missile firing on USS Harry S. Truman by the Iranians was actually related to the event.
Before anything else, leaked reports such as this one is fairly common in Russia [here], whether by design or not. But, considering the ongoing covert geopolitical war which should include propaganda, this leak may have been intentional and is meant to further destroy what’s left of the reputation of the White House and the mainstream media.
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Fantastical Myths And Grim Reality

Chesapeake Suspends Preferred Stock Dividends

With Chesapeake Energy hitting its lowest stock price since 2000 earlier this week, it was only a matter of time before US gas giant Chesapeake halted all "discretionary" cash payments, which it did moments ago when it announced it would halt dividend payments on its preferred stock.

Italy Races To Defuse €200 Billion Bad Loan Time Bomb With "Bad Bank"

"When the market speaks, as it has done in recent days, it is right that bank executives and shareholders comprehend the need for serious and swift intervention."

What Sent Stocks Soaring Overnight: DB's Jim Reid Explains

"Away could yesterday mark the start of another plate spinning cycle from the central banks? The market chatter is now looking towards Kuroda to signal more action when the BoJ meet this time next week. Will Yellen also signal a more cautious and dovish stance at the FOMC next Wednesday? We continue to think central bank money printing globally remains in the early stages. Such policies could go on for several years yet even if there are periodic pauses."

Global Stocks Surge, Oil Soars As Hopes For Central Bank Stimulus Return

"There is hope of more stimulus in March and potential for even more stimulus in Japan and China, so if we get concrete positive economic news the rebound could last into next week,” said John Plassard, senior equity- sales trader at Mirabaud Securities. “I told my clients to fasten their seatbelts and wait for better news, and this is finally happening."... "The turnaround in sentiment came amid signs central banks may be prepared to act after $7.8 trillion was erased from the value of global equities this year on China’s slowdown and oil’s crash."

Who is Morgan Stanley and Why Its $31 Trillion in Derivatives Should Concern You

by Pam Martens and Russ Martens, Wall Street on Parade:
According to a report from one of the regulators of national banks, the Office of the Comptroller of the Currency, as of September 30, 2015, insured U.S. commercial banks and savings associations had exposure to $192.2 trillion notional (face amount) of derivatives.  (Yes, that’s trillion with a “t”.) The report goes on to terrify with the revelation that only four banks hold 90.8 percent of all derivatives: Citigroup, JPMorgan Chase, Goldman Sachs and Bank of America.
But that’s far from an accurate picture. Buried deep in the report is Table 2, which broadens the landscape beyond just the commercial banking units of the mega Wall Street firms to what is lurking in the holding companies. In Table 2 we learn that Morgan Stanley ranks right up there with the other big boys on Wall Street, holding $31 trillion notional in derivatives. (See chart below.)
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"Our Europe Is Dying": German Youth Blast Merkel's "Multicultural Utopia"

"Your politics sacrifice our traditions and values for a multicultural utopia. Identity is valuable and we are becoming aware of it again."

Billionaire Blackstone CEO Trolls American Public – Doesn't Get Why People Are Angry

"I find the whole thing astonishing and what’s remarkable is the amount of anger whether it’s on the Republican side or the Democratic side..."

The Right To Tell The Government To Go To Hell (In An Age Of Bullies, Censors, And Compliants)

“If liberty means anything at all, it means the right to tell people what they do not want to hear.”? George Orwell

The Fragile Forty & How The World Lost $17 Trillion In 6 Months

It's official. More than 50% of the "wealth" effect created from the 2011 lows to the 2015 highs has been destroyed (despite the world's central banks going into money-printing overdrive over that period). Almost $17 trillion of equity market capitalization has evaporated in just over 6 months with over 40 global stock indices in bear markets...

What Next? Framing the Evolving Macro-Financial Crisis

by Dr. Jeffrey Lewis, Silver-coin-investor:
Jeff Lewis: Hi, everyone, it’s Jeff, here. I am pleased, and it’s an honor to be here with John Rubino, and many of you know him. John runs It’s an excellent ongoing commentary, covering the unfolding macro-financial/currency crisis. He’s a contributor, a long time contributor, to CFA magazine, the CFA is the Association for Financial Professionals, if you haven’t heard of it. He’s been on wall street. He has an MBA in finance. He’s a Eurodollar trader, equity analyst, and he became a columnist for, among many other publications. Now, you can see his work pop up, frequently, on In addition to that, John’s written many books, starting way back with “Clean Money: Picking Winners in the Green Tech Boom”, “How to Profit from the Coming Real Estate Bust” was another one, “Main Street, Not Wall Street”, and lately, he’s co-authored two books with James Turk, “The Coming Collapse and How to Profit from It”, and “The Money Bubble” is the most recent. You can find all those books on They’re also available on Amazon, I’m sure. John, thank you for being here. Welcome.
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2016 Market Meltdown: We Have Never Seen A Year Start Quite Like This…

by Michael Snyder, The Economic Collapse Blog:

We are about three weeks into 2016, and we are witnessing things that we have never seen before.  There were two emergency market shutdowns in China within the first four trading days of this year, the Dow Jones Industrial Average has never lost this many points within the first three weeks, and just yesterday we learned that global stocks had officially entered bear market territory.  Overall, more than 15 trillion dollars of global stock market wealth has been wiped out since last June.  And of course the markets are simply playing catch up with global economic reality.  The Baltic Dry Index just hit another new all-time record lowtoday, Wal-Mart has announced that they are shutting down 269 stores, and initial jobless claims in the U.S. just surged to their highest level in six months.  So if things are this bad already, what will the rest of 2016 bring?
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In China Everyone Can Buy Gold At The SGE

by Koos Jansen, Bullion Star:
The Shanghai Gold Exchange launched a smartphone app for customers to trade gold.
It’s advised to have read The Chinese Gold Market Essentials Guide before you continue.
The main reason there is such a large discrepancy between Chinese gold demand as disclosed by the World Gold Council (WGC) and the amount of gold withdrawn from the vaults of the Shanghai Gold Exchange (SGE), the latter being a measure for Chinese wholesale gold demand, is because of direct purchases by individual and institutional clients at the SGE. Whilst the WGC, and many other consultancy firms, measure Chinese gold demand strictly by how much gold is sold through retail channels, the reality is that in China every citizen can open an SGE account and buy gold directly in the wholesale market (the SGE). Such direct purchases at the SGE are not captured in retail demand.
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Another Year of Synthetic Gold Trading in the New York Market

from Jesse’s CafĂ© AmĂ©ricain:
Looking back, it is evident from the charts below that 2015 was another year of decline for physical gold deliveries in New York. This is thought to be a benign phenomenon by some.
As you know I think that such a decline in the connection to the fundamental flows of a physical commodity creates a potentially dangerous situation, especially in a climate in which most of the major markets have shown themselves to have been systematically rigged by corrupt trading institutions.
Read More…

If This ISN’T the Start of the Crisis, Just Imagine How Bad the REAL Crisis is Going to Be

from Sovereign Man:
Chances are you’ve never heard of William White. You might have heard of the organization that he used to manage—the Bank of International Settlements (BIS).
The BIS is often called the central bank of central banks; their role is essentially to facilitate international financial transactions among the world’s central banks. So they are a major component in the international financial system, just like the IMF and World Bank.
William White is a central banker who used to be on the BIS management committee. And this makes him a key member of the global financial establishment.
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U.S. Healthcare System Really DOES Kidnap Teens

by Julie Wilson, Natural News:
A Missouri mother has been accused of medical child abuse after requesting a second opinion regarding her 17-year old son’s medical care. Isaiah Rider, who suffers from neurofibromatosis, a rare condition causing tumors on the nerves, was told he could no longer see his mother following a surgery at Luries Children’s Hospital in Chicago, Illinois. “One day I woke up, and I was surrounded by a bunch of doctors, and they told me that I wasn’t allowed to see my mother anymore,” said Rider in a YouTube video he made after being placed in foster care following his release. “I was shocked. I was shocked.”
Mother told of agency intervention after the fact
Their story began when he and his mother, Michelle, traveled to Chicago from their home in Missouri to visit specialists recommended by his Kansas City doctors. Rider underwent surgery at Luries hospital but his condition did not improve. He remained in severe pain, suffering from hours-long tremors in what was left of his amputated leg, prompting his mother to request he be transferred to another facility for a second opinion. This resulted in the intervention of Child Protective Services (CPS) in Chicago, which immediately seized custody of Rider, leaving no time for goodbyes.
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How Economic Disinformation Works: A Modest Case Study

from The Daily Bell:
Fears grow of repeat of 2008 financial crash as investors run for cover… As leaders gathered in Davos, FTSE 100 was gripped by panic selling and entered bear market with Dow Jones also plunging. – UK Guardian
Dominant Social Theme: Fears are growing as the world’s economic system trembles on the verge. What to do?
Free-Market Analysis: Let us recall how long ago we were misled and what techniques were used. This Guardian article provides us with a proverbial “teachable moment.”
In broadest terms, the article, like others of its type, is written to engage our emotions and excite our fears. Then, toward the end of the article, we are exposed to various solutions and soothing words that seem to indicate that all will be well sooner or later if we just trust the correct authorities. In other words, first the article excites and then it calms.
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State Dept. Won’t Take Position on Declaration that Clinton Emails Contained Info ‘Derived From Classified IC Element Sources’

by Terence P. Jeffrey, CNS News:
The State Department is avoiding taking a position on the assertion made in “sworn declarations” presented to the Inspector General of the Intelligence Community by an “element” in the U.S. Intelligence Community that emails on former Secretary of State Hillary Clinton’s private server, as the IG put it in a letter addressed to two Senate committe chairmen,“contain information derived from classified IC element sources.”
Inspector General Charles McCullough described the “sworn declarations” in a letter he sent on Jan. 14 to Senate Intelligence Chairman Richard Burr and Senate Foreign Relations Chairman Bob Corker. McCullough also sent copies of the letter to Senators Dianne Feinstein and Ben Cardin, the ranking members of the Senate Intelligence and Foreign Relations committees; Representatives Devin Nunes and Adam Schiff, the chairman and ranking member of the House intelligence committee; Director of National Intelligence James Clapper; and State Department Inspector General Steve Linick.
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