Sunday, March 6, 2016

The Unintended Consequences Of Greenspan's "Frankenstein" Markets

It is common knowledge by now that Federal Reserve Chairman Alan Greenspan oversaw, enabled and approved of, a major transition in the US economy. Following markets on the escalator up and taking the elevator down together set a precedent that created a Frankenstein monster, which socialised losses through the printing press while privatizing profits. Such a system was and still is unsustainable as it more or less ensures valuations decouple from underlying fundamentals.

"We're In The Eye Of The Storm" Rothschild Fears "Daunting Litany" Of Problems Ahead

As central bank policy-makers' forecasts have become more pessimistic (i.e. more realistic), Lord Rothschild is unsurprised at the current malaise: "not surprisingly, market conditions have deteriorated further...So much so that the wind is certainly not behind us; indeed we may well be in the eye of a storm." On this basis, Rothschild highlights a "daunting litany of problems," warning those who are optimistically sanguine about the US economy that "2016 is likely to turn out to be more difficult than the second half of 2015."

John Perkins: The Shadow World Of The Economic Hitman

John Perkins, author of The New Confessions of an Economic Hit Man, tells a dark story of an elite cabal working in the shadows to subjugate governments as it pursues ever-greater control of the planet's resources. What's most frightening about this story is how credible it is. Anybody paying attention to world developments will have a hard time dismissing Perkins' claims out-of-hand; and a harder time not being sickened at how on the mark his claims may likely prove to be...


Peak Oil Squeeze? Hedgies Capitulate On Bearish Oil Bets

Hedge Funds covered their short oil bets by the most in 11 months last week. CFTC data shows managed-money short positions dropped 25,639 contracts last week, sustaining a 26% rally off February lows. In April 2015, WTI rallied over 20% off its lows amid the same short-covering squeeze, only to collapse 40% in the next 3 months (despite OPEC hope and calls for stability). Oil ETF shorts have also capitulated back to "normal" long-short ratios suggesting oil has seen "peak" short-covering.

"There's An Insurrection Coming... The American People Are Sick & Tired Of Crony Capitalism"

"There’s an insurrection coming...Mitt Romney will always be remembered as the one who put us over the edge and awoke a sleeping giant, the Silent Majority, the American people..."

Are Greek Banks About To Charge For The Privilege Of Banning €500 Bills?

Just look at it as a repo for everyday depositors: post your €500 notes as collateral, take the haircut, get smaller bills in return.

Images From The Death Of China's Rustbelt

"The European Project Was Always Bound To Fail" - Europe Without The Union

Any project attempting to fuse these disparate cultures into one monolithic state over the course of just 70 years was by its very nature doomed. It would inevitably encounter insurmountable levels of nationalistic resistance, and eventually the project would stall. That is the point at which we now find ourselves.

Which States Rely Most On Federal Spending?

The state most reliant on federal spending is Mississippi where federal spending is equal to 32% of the state's GDP, and the current central banking regime perpetuates the current imbalance between net tax payer states and net tax receiver states by making it more difficult for poorer parts of the country to accumulate wealth and increase productivity.

While China Disappointed Stimulus Expectations, Here Is a Summary Of The Main NPC Announcements

As we wrote early yesterday when we summarized the outcome of the first day of China's People's Congress, China failed to deliver any of the major stimulus programs the market was expecting. So what exactly did China announce on its first day of the National People's Congress. Read on to find out...

Is This The End Of CNBC As We Know It?

Something "disturbing" has emerged for financial pundits whose only job is to appear on CNBC, Fox Business or Bloomberg TV and to present their recurring daily permabullish view while pocketing a commission in exchange for the (almost) free advertising: a proposal which would hold them accountable for their recommendations. The result: an industry-wide panic about a post "fiduciary rule" world in which talking heads on CNBC can't simply disappear for a few months after saying that "Bear Stearns is fine" days before the bank spontaneously combusts.

JPM's Head Quant Explains Who Unleashed The S&P Rally, And What May Happen Next

What is the fate of this market rally? In terms of technical flows, more inflows would come if 3M and 12M momentum turn positive, which would happen at ~2025 and ~2075, respectively. If volatility stays subdued, volatility-managed strategies could also increase equity exposure. However, equity momentum is also vulnerable to the downside and a move lower could be accelerated by 6M and 1M momentum unraveling at ~1950 and ~1900, respectively.

Lawmakers Just Passed A Proposal To Ban Donald Trump From Entering Mexico

Legislators in Mexico City passed a proposal on Thursday to bar presidential candidate Donald Trump from entering the country.

Saudis Awarded France's "Highest National Honor" For "Fight" Against Terrorism

There really are no words. But we tried to come up with a few.

Key Equity Index Climbs Back Up The Elevator Shaft

While the market has climbed from the ground floor all the way back up the elevator shaft, it may find the access to upper floors there rather limited. After rallying 14% in just about 3 weeks, a ratcheting down of upside expectations would certainly seem warranted.

Jefferies Trolls "Lightweight" Zero Hedge For Being Negative, Unveils Major Restructuring Hours Later

Today's moment of crystal-shattering poetic justice comes just hours after "TJ" trolled "lightweight choker Zero Hedge" for being too negative when Reuters reported that "Jefferies restructures junk debt business, bankers leave "

"Idiot, Clown, Or Hero?": Europe Ponders The Donald

There are some in Europe who are repulsed by Donald Trump - who see the billionaire as the very antithesis of everything the bloc stands for. Then again, in the context of Western Europe's worsening migrant crisis and everything that's come with it, some increasingly see a veritable "hero."

Gold And Silver

by Michael Noonan, Edge Trader Plus:

In last week’s commentary, February Heralding End Of Down Trend?, we stated: The significance of February is its decided change in market behavior on the monthly and weekly charts.”  We are seeing even more evidence to support that premise, and all that is required is to observe the next corrective reaction to see where, at what level, price tests prior to resuming the start of an uptrend that began last December.
We noted that the monthly bar for February [See first chart], was wide range to the up side with a strong close, and it marked the potential for an important change in market behavior that could mean December 2016 may be the final low of this protracted 6 year correction.
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Why The System Is Set For Tyranny: The High-Tech Collectivist State

from Truthstream Media:

The metaphor of society run by the levers of the machine, and the “system” that operates government and industry became much more literal in the post-war age of cybernetics.
Mathematics and other related fields have got all that behavior down to a somewhat exact science. The use of algorithms and feed back mechanisms to track behavior has allowed the social scientist to manage people in mass, in often very subtle yet deeply meaningful ways.
Here, Stafford Beer explains a concept outlined by Ross Ashby about the natural order and tendencies of systems – including some obvious pitfalls that are being played out today.:
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There Is No Rule of Law

by Karl Denninger, Market-Ticker:

Where’s the arrest?  But the cop was off-duty — and instead of turning the knife over to his higher-ups, sources said he kept it for years.
In late January, he contacted a friend in the homicide division — and told him he was getting it framed for his wall.
The former traffic division officer even asked the pal to get the departmental-record number for the Nicole Brown Simpson and Ron Goldman murder case so he could engrave it in the frame, TMZ reports.
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9 Things To Do To Prepare For Hard Times Ahead

from The Sleuth Journal:

Most Prepper types that I know appear to have a common trait: they are good at evaluating risks then moving to mitigate those risks in a nimble manner. What that means, in somewhat plainer English, is they have the ability to evaluate a situations, make a plan, learn from it, and ultimately act in a responsible manner.
Along those lines, more recently I have done some personal analysis and put more focus on what I call “hard times ahead”. With my disaster preps more or less in order, I want to ensure that my own household will get through a period of difficulty when, for instance, there is not enough food, work, or money to go around.
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