Submitted by Tyler Durden on 01/25/2016 - 09:33
QE no longer works: "it is difficult to push the prices of these assets up and it is easy to have them fall. And when they fall, there is a negative impact on economic growth. When debt levels cannot be increased without reducing spending — stimulating demand is more difficult."
But do more QE anyway: "Since the dollar is the world’s most important currency, the Fed is the most important central bank for the world as well as the central bank for Americans, and as the risks are asymmetric on the downside, it is best for the world and for the US for the Fed not to tighten."
Submitted by Tyler Durden on 01/25/2016 - 09:13 The status quo "solution" to the decline of opportunities for meaningful work is predictably top-down: guaranteed income for all, a.k.a. "welfare for all." This is of course a re-hash of the Keynesian Cargo Cult's 1930 fix for the Great Depression, except on a far grander scale. If the "solution" doesn't enable the accumulation of capital in all its forms by individuals and households, it isn't a real solution--it's just another top-down scheme that institutionalizes subsistence serfdom.
Submitted by Tyler Durden on 01/24/2016 - 21:50 Having recently explained his "greatest investment opportunity for the next 3 to 5 years," Kyle Bass expands on his China discussions to focus on Emerging Markets more broadly and specifically The BRICs. As Benzinga summed up, Bass Warns "we still have three tough innings to go, maybe four," he warning that emerging markets will "see a lot more pain before things are okay."
Submitted by Tyler Durden on 01/25/2016 - 08:50 If Russian and Western airstrikes are “degrading and defeating” Islamic State, someone forgot to tell al-Hayat Media Center, the brain trust for a sprawling network of discrete propaganda production units that are spread across nearly a dozen countries.
Submitted by Tyler Durden on 01/25/2016 - 08:43 Following a rerun of September 2015, when Draghi sent market expectations about ECB action sky-high only to massively disappoint in December (we will have to wait until March to see if it is deja vu all over again) last week, this week is just as big for central bank jawboning with the FOMC (Wednesday) and the BoJ meeting on Friday, with hopes that they will at least hint of more easing if not actually do much.
Submitted by Tyler Durden on 01/25/2016 - 08:29 After the white-knuckle sell-off of global equities that was finally punctuated by a rally late last week, everyone wants to know: Was this the bottom for stocks? And now Moody’s weighs in with an unwelcome warning... "it’s hard to imagine why the equity market will steady if the US high-yield bond spread remains wider than 800 basis point."
Submitted by Tyler Durden on 01/25/2016 - 08:09 As we said two days ago when looking at the paltry recoveries on their total debt that bankrupt energy debtors are generating in liquidation and bankruptcy asset sales, "the energy bankruptcy party is only just starting." And sure enough, overnight we learned that another company is preparing to throw in the towel following a Reuters report that SandRidge Energy - a shale oil and gas producer in the Mid-Continent region of the U.S. - is exploring debt restructuring options, "as the heavily indebted U.S. oil and gas exploration and production company struggles with the fallout from plunging energy prices."
Submitted by Tyler Durden on 01/25/2016 - 07:39 "While the worst of the U.S.’s epic winter blizzard has officially passed, it’s less likely that the storm in financial markets can also be said to have ended."
Submitted by Tyler Durden on 01/25/2016 - 06:48 After the biggest two-day surge in oil in seven years, early in the overnight session both Brent and WTI continued their run for a third day, entering a bull market, 20% up from recent lows hit just last week (still 15% down on the year) when Saudi Arabia spoiled the momentum party after the world’s biggest crude exporter said it’s keeping up investments in energy projects while diesel consumption in China dropped for a fourth consecutive month, signaling an industrial slowdown. And thanks to the near record correlation between equities and oil, global stocks and US equity index futures initially rose only to slide following the Saudi comments.
Submitted by Tyler Durden on 01/24/2016 - 22:25 What would the world look like the day following a “truth bomb” dropped by Mr. Putin and the Chinese.
A recent bribery conviction may lead to the U.S. Supreme Court further corrupting the U.S. political system.
How does one even get convicted of bribery in a system that has legalized it to the extent that ours has? Look at Congress members’ and other federal office holders’ actions and their sources of funding. There is debate only over whether they are bribed to act or rewarded for having acted, but the correlation between action and funding is undisputed, and the sources of funding unrestricted. A headline like “Clinton Foundation Donors Got Weapons Deals From Hillary Clinton’s State Department” raises a few eyebrows but no indictments.
Nothing goes to heck in a straight line.
Investors found some relief on Friday after getting flogged on a near daily basis since the miserably short and feeble Santa Rally ended on December 30. The bounce off the dreadful lows on midday Wednesday in the US carried through. Finally! We’ve been expecting this rally. We’ve been waiting for it. Nothing goes to heck in a straight line.
“Global stocks surged the most in 3 1/2 years, as US equities joined a rally that pushed oil to its best two days since 2009 on speculation that central banks will expand stimulus measures to counter turmoil in financial markets,” Bloomberg gushed.
Two years ago, my daughter and I drove out to Memphis so she could attend a friend’s wedding. I always travel with enough cash to get home, but on this trip, I overspent a bit and as we headed home to AZ I only had about a hundred dollars left in my wallet. That’s cutting it kind of tight for a 1200 mile drive, $3.25 per gallon gas, hotels and meals for two. No worries, the trusty credit card was right next to my stack of Jacksons ($20 bills … God rest his soul for resisting a central bank).
At our first gas stop somewhere in eastern Arkansas, I pulled in and my Visa card did not work. I went into the store and there were about five other people with the same problem. I walked out and we drove on, figuring that their system was down in that little rural station. Next stop was about 30 miles down the road and the card did not work again. Now I was a bit nervous. I paid with some cash and we drove on while my tin-foil-hat-addled brain imagined all kinds of possibilities. We stopped again somewhere beyond Little Rock at a station and, Whew! their system was working. They told us that bad weather around OK City had taken down the Visa system throughout the mid-south.
Don’t believe anything you read about health from the large corporate “gatekeepers” of online information (like Google, Wikipedia, WebMD, etc.)
They’re all deliberate lies and misinformation, designed to prevent you from learning the truth about natural cures, disease prevention, nutritional therapies, self-healing, vitamin D for cancer prevention and much more.
Preventing disease, you see, doesn’t earn money for all the profiteers of the medical system: the cancer centers, hospitals, transplant surgeons, drug companies and all the media and internet companies they fund (CNN, Google, NBC, Facebook, etc.).