Tuesday, February 9, 2016

$7 Trillion In Bonds Now Have Negative Yields

Just ten days ago, in the aftermath of the BOJ's -0.1% NIRP announcement, we reported that after one year of NIRP had pushed the total number of government bonds with negative yields to a staggering $3 trillion, that number nearly doubled overnight to $5.5 trillion. Overnight in a historic event, the latest consequence of the BOJ losing control, the yield on Japan's 10Y JGB dropped below zero for the first time, in the process joining Switzerland as the only other country (for now) with a NIRPing benchmark 10Y treasury.

Last Pillar Standing Breaks - They're Taking Out The "Generals"

The relatively few leaders (aka, “generals”) that had been propping up the indexes are being systematically taken out.

Deutsche Bank Stock Crashes To Record Low

Moments ago, in response to DB's open querry on Twitter whether the Dax is "overreacting", we highlighted DB's soaring CDS and asked if perhaps the market was not underreacting. Minutes later the market opined, by sending DB stock to new all time lows.

After Crashing, Deutsche Bank Is Forced To Issue Statement Defending Its Liquidity

"Today Deutsche Bank published updated information related to its 2016 and 2017 payment capacity for Additional Tier 1 (AT1) coupons based on preliminary and unaudited figures.   The 2016 payment capacity is estimated to be approximately EUR 1 billion, sufficient to pay AT1 coupons of approximately EUR 0.35 billion on 30 April 2016."

German Finance Minister Joins DB CEO, Says "Not Worried About Deutsche Bank"

With Deutsche Bank credit risk exploding and stock price collapsing to record lows, despite the CEO's "rock solid" affirmations, there is only one way to know just how real a crisis this is... when government officials issue 'denials'.

A Confused Deutsche Bank Takes To Twitter Seeking Answers For Market Crash

Deutsche Bank Selling Resumes After CEO Assures Employees Bank Is "Absolutely Rock Solid"

"You can tell them that Deutsche Bank remains absolutely rock-solid, given our strong capital and risk position. On Monday, we took advantage of this strength to reassure the market of our capacity and commitment to pay coupons to investors who hold our Additional Tier 1 capital. This type of instrument has been the subject of recent market concern."
Or, said otherwise, "Deutsche Bank is fine." And the selling has resumed...

US Investment Grade Credit Risk Spikes To 5-Year Highs

When it rains it pours...

WTI Plunges Back Below $30 After Goldman "Teens" & IEA Excess-Supply Warning

WTI keeps dead-cat-bouncing thanks to the algos and crashing thanks to reality. This morning's reality check on the overnight ramp comes courtesy of a double-whammy from Goldman ("wouldn't be surprised to see WTI in the teens") and The IEA which increased its estimate of excess-supply drastically. This has dragged WTI back below $30 once again and where oil goes, stocks go...

European Sovereign Risk Soars As Bank Contagion Spreads

The ECB's "whatever it takes" ponzi strategy of keeping the dream alive in Europe's financial system has finally been caught as rapid collapse in the banking system is contagiously spreading to peripheral sovereigns once again. Portugal risk spreads are up 120bps in the last 3 weeks and Spain and Italy are soaring over 35 and 50bps respectively as the almost self-dealing nature of banks buying "risk-free" EU bonds and repoing for cash via The ECB comes home to roost...

Race To Bottom Enters Final Lap: ECB Will Cut To -0.7% In June, JPM Predicts

We now expect the March package to include a larger deposit rate cut of 20bp, taking it to -0.5%
We now expect another package after that, possibly as early as June
We expect this second package to take the deposit rate to -0.7% and to extent QE until end-2017
Our forecast change is motivated by risk management amidst low inflation, rather than a macro forecast change

Nine Dead, Hundreds Injured As German Trains Collide Head On

"We need to find out what happened, if the cause of the crash was based on the technology or human failure. This is a huge shock."

Global Markets Stunned By Biggest Japan Crash Since 2013; All Eyes On Deutsche Bank

With China offline for the rest of the week, global markets have found a new Asian bogeyman in the face of Japan which as reported last night saw its markets crash, and the Yen soar, showing that less than 2 weeks after the BO

"The Market Knows It's Over" Jim Rogers Warns "We're All Going To Suffer"

"...investors around the world are realizing that the jig is up... We’re all going to suffer… Central Banks will panic but the market knows this is over and we’re not going to play this game anymore."

Japan In Turmoil: Stocks, USDJPY, Bond Yields Collapse

The total and utter failure of The BoJ continues to accelerate...

Day Of Reckoning: The Collapse Of The Too Big To Fail Banks In Europe Is Here

by Michael Snyder, The Economic Collapse Blog:

There is so much chaos going on that I don’t even know where to start.  For a very long time I have been warning my readers that a major banking collapse was coming to Europe, and now it is finally unfolding.  Let’s start with Deutsche Bank.  The stock of the most important bank in the “strongest economy in Europe” plunged another 8 percent on Monday, and it is now hovering just above the all-time record low that was set during the last financial crisis.  Overall, the stock price is now down a staggering 36 percent since 2016 began, and Deutsche Bank credit default swaps are going parabolic.  Of course my readers were alerted to major problems at Deutsche Bank all the way back in September, and now the endgame is playing out.  In addition to Deutsche Bank, the list of other “too big to fail” banks in Europe that appear to be in very serious trouble includes Commerzbank, Credit Suisse, HSBC and BNP Paribas.  Just about every major bank in Italy could fall on that list as well, and Greek bank stocks lost close to a quarter of their value on Monday alone.  Financial Armageddon has come to Europe, and the entire planet is going to feel the pain.
Read More

Obama Owns Stock in Gun and Ammo Manufacturers, Profiting From His Policies

by by Joe Wolverton, The New American:

While with his infamous “pen and … phone” President Barack Obama has acted to limit the availability of guns and ammunition; with his investments he profits from the purchase of both these objects which have “taken a heartbreaking toll on too many communities across the country.
special report published by Reuters on February 5 reveals that President Obama owns stock in a couple of manufacturers of guns and ammunition.
From his days in the Illinois General Assembly, President Obama has up to $100,000 invested in a nearly $16 billion state pension plan, which has about $5 million invested directly in several gun and ammo makers.
Read More…

The corrupt Federal Reserve is NOT Federal

from Biblicism Institute:

“Give me control of a nation’s money and I care not who makes its laws” – Mayer Amschel  Bauer Rothschild
A Central Banking System is a cover to secure the privilege of issuing money.
At the turn of the 20th Century, said privilege was being courted in the US by the then most powerful European bankers: the Rothschilds and their partners.
They had a choke hold on the banking business throughout the world and wanted the same in the US.
Wikipedia and the Jewish Encyclopedia clarify it thus:
“Mayer Rothschild’s strategy was to keep control of their banks in family hands, allowing them to maintain full secrecy about the size of their fortunes.
Read More…

What the Heck is Going On in the Stock Market?

from Wolf Street:

A sea change.
Even Moody’s which is always late to the party with its warnings – but when it does warn, it’s a good idea to pay attention – finally warned: “Don’t fall into the trap of believing all is well outside of oil & gas.”
What happened on Friday was the culmination of another dreary week in the stock markets, with the Dow down 1.3% for the day and 1.6% for the week, the S&P 500 down 1.8% and 3.1% respectively, and the Nasdaq down 3.2% and 5.4%. The S&P 500 is now nearly 12% off its record close in May, 2015; the Nasdaq nearly 17%. So on the surface, given that the Nasdaq likes to plunge over 70% before crying uncle, not much has happened yet.
Read More

Negative Interest Rates Destroying World Economy: “Doom-and-Gloom Outlook for Banks in Europe”

by Mac Slavo, SHTFPlan:

Trying to simply hold onto the standard that you’ve got has become a new normal for financial challenges. Equity erodes away when interest rates go negative… then everything starts to sour.
China’s economy and stock market are effectively in the toilet, or poised to further collapse the next time anything big happens in Europe or the United States, and perhaps any part of the world.
The U.S. stock market has become jumpy and prone to collapse as well, and all major markets are now global, and trip up anytime the string tied around their ankle is yanked from across the ocean. And collapsing oil prices are adding huge pressures to everything.
Read More

Saudi Arabia Prepares To Send Special Forces To Syria; Will Fight As Part Of "US-Led Coalition"



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