Monday, February 8, 2016

European Bank Bloodbath Crashes Bond, Stock Markets

We're gonna need more "whatever it takes"...

Peter Pan(ic) Policy Plunges USDJPY To 17-Month Lows

USDJPY has tested down to 115.00 this morning as the blowback from Kuroda's "Peter Pan" policy move into NIRP continues to ripple through the world's largest carry trade. Most troubling is last week's jawboning  of "no limits" made the situation worse as desperation was clear, erasing all of USDJPY's gains since it unleashed QQE2 after The Fed ended QE

Wall Street's Biggest Permabull Slashes US Growth Outlook (Again), Says No Chance Of March Rate Hike

There are two ways to look at this. On the one hand, you might be inclined to think it's especially bad news when the Street's permabulls turn bearish. On the other hand, this is a man who once lost a forecasting contest to a groundhog, so perhaps a rip-roaring economic recovery is just around the corner.

Is This The Reason For Europe's Sudden Bloodbath

There is a new  element to the latest European selloff, one which turned vicious just minutes after Europe opened for trading this morning with not just commercial banks (who are now all subject to bail-ins courtesy of the BRRD) being dumped with the Deutsche Bank water, but peripheral spreads and equity markets have all joined in. And moments ago, the Athens stock market just dropped to the lowest level since 1990, while the Greek banking index just crashed over 21% to a new all time low.

Record 5 Year Treasury Shorts Crucified

US Treasury yields are collapsing across the entire curve, down  9-10bps from their pre-opening highs this morning. While 10Y pushed belwo 1.80% (to one-year lows), it is 5Y yields that have traders the most anxious as record speculative short positions get crucified, breaking below three-year channel lows...

Catch Up On The Latest Chinese News With These Seven Bullets

With China offline for the next 7 days as its celebrates its Lunar New Year, here are 7 bullets from Evercore ISI to get everyone up to speed on the latest developments in the world's most troubled growth economy.

Steve Keen Exposes Our Dysfunctional Monetary System

We are hostage to a dysfunctional monetary system, run by people who don’t understand how it works in the first place. No wonder the global economy is in the doldrums, and finance markets are having dyspeptic attacks.

California Renter Apocalypse

The rise in rents and home prices is adding additional pressure to the bottom line of most California families. In most of the US buying a home may make some sense. In California, the massive drop in the homeownership rate shows a different story. And that story is the middle class is disappearing...

"it seems reasonable to judge that the Fed’s current political situation is more parlous than is the case among its overseas counterparts. For all of the above reasons, we believe the hurdle for NIRP in the US is quite high, and we would need to see recession-like conditions before the Fed seriously considered this option."

Greek Tragedy: Pension Pandemonium Sparks Bank Crash, Stocks At 26 Year Lows

And you thought Greece was "fixed"...

Three Reasons To Be Worried About The Economy

The political class has completely disrupted the American structure of production, made American workers uncompetitive, snuffed the life out of entrepreneurs, and burdened the entire nation with a debt obligation the size of Jupiter. The US economy is not the strongest and most durable in the world — it is an unskilled thirty-two-year-old waiter crashing at his parent’s place and trying to pay down an $80,000 international relations degree.

Gold Spikes To 8-Month Highs, Silver Breaks Key Technical Level

The bid for precious metals is accelerating. Gold just broke above its October 2015 highs to 8-month highs. Silver is also bursting higher, soaring above its 200-day moving-average.

Key Events In The Coming Week: Janet Yellen Testifies, China Closed

With China celebrating the Lunar New Year and offline until next weekend, and with the US in the usual post-payrolls macro newsflow lull, the markets will have more than enough time to stew in the latest source of contagion fears, namely Europe, the same Europe which until recently was fixed but is broken all over again.


FANG stocks are collapsing in the pre-market as faith in the "growth at any cost" meme crashing on the shores of reality once again. Now down over 16% from their post-Fed-rate-hike highs, the stocks you should never sell are being sold in size as large crowds and small doors press NFLX and AMZN (and TSLA for good measure) down over 30% year-to-date. Even Mark Cuban is hedging...

Chesapeake Plummets Over 20% On Report It Has Hired Bankruptcy Attorneys

The saga of the gas giant Aubrey McClendon's built, Chesapeake Energy, enters its endgame, when moments ago following a Debtwire report that the company has hired Kirkland and Ellis as its restructuring/bankruptcy attorney - typically a step taken just weeks ahead of a formal Chapter 11 filing - the stock has plunged 22% to $2.40, the lowest price in the 21st century, and for all intents and purposes, ever.

Momo Bad News: JPM's Quant Guru Kolanovic Confirms Tech Bubble Has Burst... Again

"The biases of momentum investing and passive indexation have resulted in valuation distortions across assets as well as equity segments including Technology. Over the past years this trend has picked winning assets, sectors, and stocks often with less regard to fundamental valuation and more regard to momentum and extrapolated growth. We believe that 2016 may result in a reversion of this trend.... Even if this rebalancing comes as a result of market volatility and broader equity declines, long term it will benefit capital markets and the efficient allocation of capital."

Gold Surges To 4-Month Highs

Gold is now up over 13% from its pre-Fed rate-hike lows, having surged through its 200-day moving average by the most in 2 years. As bank risk spikes globally, it appears bonds & bullion are the investment of choice once again in the face of systemic fragility concerns. At 4-month highs, gold is nearing a crucial breakout point...

Germany Shuts Down Canadian Bank Tied To Money Laundering

For the first time since 2012, Bafin - Germany’s banking regulator, which for a minute looked like it might actually accuse Anshu Jain of lying about LIBOR - has closed a bank. All financial transactions by Maple Bank of Canada’s German subsidiary have been halted due to "imminent over indebtedness."


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