US Stocks Erase All Post-QE3 Gains, Tumble To Fed Balance Sheet 'Reality' Once More

For the first time since early March, The Dow dropped back near 17,000 earlier (down over 1000 points from the pre-Brexit peak) with a modest bounce off the EU close lows. However, this plunge across risk assets has erased all post-QE3 gains with Trannies down 20% since Oct 2014. Having been almost 200 points 'rich' to the Fed balance sheet, it appears reality is setting in once again and risk is mean-reverting.

These "Brexit" Market Moves Were Bigger Than Anything Seen In 2008... And What Comes Next

European Banks Crash To Worst 2-Day Loss Ever As Default Risk Soars

So much for George "Panic-Monger" Osborne's calming statement this morning...

 

S&P Downgrades UK From AAA To AA, Outlook Negative: Full Text

On June 27, 2016, S&P Global Ratings lowered its unsolicited long-term foreign and local currency sovereign credit ratings on the United Kingdom to 'AA' from 'AAA'. The outlook on the long-term rating is negative. We affirmed the  unsolicited short-term foreign and local currency sovereign credit ratings on  the U.K. at 'A-1+'. We also lowered to 'AA' from 'AAA' our long-term issuer credit rating on the  Bank of England (BoE) and the ratings on the debt programs of Network Rail  Infrastructure Finance PLC. We affirmed the short-term ratings on the BoE and  Network Rail Infrastructure Finance debt programs at 'A-1+'. The outlook on the long-term rating on the BoE is negative.

Greece To "Name & Shame" Debtors Owing Over EUR300k To The State

Greece’s Finance Ministry is determined to collect what belongs to the state and as KeepTalkingGreece reports, since repayment settlements and other forms of arrangements have apparently failed in pushing debtors to put their hands in their pockets, the ministry will call in the internet cavalry: it will name & shame on the web the names of those debtors owing more than 300,000 euro to tax office or to social security and pension funds.

  

President Of The European Parliament: "It Is Not The EU Philosophy That The Crowd Can Decide Its Fate"

"The British have violated the rules. It is not the EU philosophy that the crowd can decide its fate".

These Three Survey Responses Explain Everything That Is Wrong With The US Economy

"The economy is nervous, shaky and uncertain. Fed policy has us locked into a lethargic and tenuous position. It appears the Fed doesn’t know how to get off the horse it created. The Fed talks interest rate increases but looks for every reason not to do it. Until the Fed backs out of trying to manage the economy, we will be stuck on the cusp of slow growth and a recession."

Deutsche Bank: "There's No Escaping The Fact That This Is A Class War"

"There's no escaping the fact that this is a class war. Whether its globalisation, immigration, inequality, poor economic growth or a combination of all of them it's quite clear from this and other anti-establishment movements that the status quo can't last in a democracy. Eventually you'll have a reaction. This is one such major reaction and given that the UK growth rate has been ok of late, it would be strange if pressure didn't continue to build elsewhere where growth has been lower for longer."

Did The Market's "Wile E. Coyote Moment" Begin?

"The unlimited ability of CBs to “prop up” financial assets has been shattered around the globe as Kuroda and Draghi are unable to protect asset markets (Carney as well apparently), but in the US, faith in Yellen remains high.  Perhaps I’m old fashioned, but I believe that this too shall pass."

"This Is A Recession" - Dallas Fed Workweek Hits 7-Year Low

The Dallas Fed Business Outlook has now been in contraction for 18 straight months. The underlying components are mixed but the average workweek has collapsed back to its lowest since Nov 2009. As one respondent noted, "This is a recession... Fed policy has us locked into a lethargic and tenuous position... We cannot have millions of people out of the workforce and be healthy economically - they are a burden not a benefit."

BofA Predicts Record Low Bond Yields In Q3, Hopes Central Banks "Deploy Additional Easing"

5Y yield: 0.85% (3Q), 1.00% (4Q)
10Y yield: 1.25% (3Q), 1.50% (4Q)
30Y yield: 2.00% (3Q), 2.25% (4Q)

Oil Tumbles Amid Bad News For Glut As US Offshore To Hit Record In 2017

WTI Crude has tumbled back to a $46 handle this morning (from over $50 on Friday) with Brexit volatility weighing on every asset class and Nigeria and Canada restart production (following rebel attacks and wildfires respectively) but as OilPrice.com's Charles Kennedy notes companies pumping oil from the Gulf of Mexico will ramp up production in coming months, propping up American output, despite efforts to curb production and raise barrel prices.

Hillary's Lead Over Trump Is Either 1% Or 12% Depending On Which Poll You Believe

How is the US presidential election shaping up in the polls? Well, it depends on which media outlet one chooses to rely on. There have been two new polls released recently by major media outlets, each with vastly different results, which incidentally should not come as a surprise those who bet on a sure thing Brexit "reamain" outcome based on such things as "odds" and "polls",  only to lose money.

S&P 500 Plunges Below 2,000 Level, Biggest Drop Since August Crash

Well that escalated quickly...

UK PM Cameron To Tell Parliament "No Second Referendum" - Live Feed

In a much anticipated speech to The House of Commons, UK PM (for now) David Cameron is expected to tell his parliamentary peers that he and his cabinet agree there will be no second referendum as part of a formal statement on the Brexit vote to diminish false hopes or complications beyond the ones already visited on the country. The speech - his first since his resignation - is expected to be boisterously received, as one MP noted earlier, "You don't have a plan A for a Brexit, let alone a plan B."

US Banks Are Crashing

"Fortress balance sheets"?  Brexit contagion is spreading as USD liquidity and counterparty risk in the interconnected global financial system has reached US banks with Goldman at 3 year lows and BofA and Citi plunging over 12%. This happens just two days after the Fed released its latest stress test results finding that none of the 33 banks tested would need additional capital in case of a "severe" financial crisis.

Top Google Trend: Is Hillary Clinton Going To Jail?

from The Alex Jones Channel:

Most Google users searching for information on Democrat presidential candidate Hillary Clinton are asking “Is Hillary Clinton Going To Jail?”

BOMBSHELL: FBI Admits NOBODY DIED @Pulse… Before 5:13AM? BULLSH**! WAKE UP!

from TruthMediaRevolution:

If America knew that shootings like these were fake, there would be an uprising over night. We are approaching the end of this fake fabricated gun shooting epidemic under the Obama administration.

Weekend Edition: Mark Ford: Five Ways to Break Free From Your Financial Worries

by Doug Casey, Casey Research:
But it’s not too late…
Today, in part two, Mark shares his best advice on how to create a very attractive retirement. If you’re stressing over your current financial situation, we think you’ll find these five solutions extremely helpful…
Fair warning: The information below might be difficult to take. But if you stick with it to the end, my bet is that you’ll feel a lot better about your situation. In fact, many of my longtime readers have taken this plan and broken free of financial worry completely.
More importantly, you’ll have a plan of action.
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NY Couple Loses $25k Because Their Bank Doesn’t Keep Records

by Joshua Krause, Activist Post:
Other than politicians and the media, there is no other force in our society that is hated more and trusted less than the big banks. Between the bailouts that followed the crash of 2008, and the wealth confiscations that occurred in Cyprus a few years later, it’s become abundantly clear to everyone that the banks are run by criminals, and you can’t trust them to hold onto your savings.
And if you ever needed another reason to be cautious about putting all of your savings into a bank, you should listen to what happened to Anna and Salvatore Russo. The couple opened a savings account with Chase Bank in 2002, and deposited $30,000, which was reduced to $25,000 after they made a withdrawal shortly thereafter. But with the exception of that withdrawal, they hadn’t touched their bank account for years, in the hopes that they would collect interest on the money.
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Bo Polny-Poverty, Hunger, Joblessness, Anger and then War

from Greg Hunter:

Market cycle analyst Bo Polny says his big cycles measure 252 years. 1764 was the beginning of the last cycle, and there was turmoil then too. Polny explains, “We are out of time, and 2016 will be judgement, and there is all kinds of judgement that the Bible talks about. This is a judgement cycle. Last time there was the currency act of 1764 (imposed on the U.S. by Britain). They forced this currency, and you got poverty, hunger, joblessness, anger and then war. That same cycle is about to repeat now. There’s going to be wars and rumors of war. There’s going to be poverty. There is going to be hunger. There’s going to be all these things happening, and I think it’s going to be sudden.”

Running to Catch the Silk Road Express

from Rogue Money:
Rogue Money readers likely do not need to be told that when the attention of the whole world is fixed intently on one story (like, the #Brexit), it’s a pretty good bet that something equally important is happening elsewhere. In that spirit, this blog draws attention to yet another state visit made by Vladimir Putin upon his “old friend,” Xi Jinping. this past weekend June 24-26, 2016, in Beijing.
Over 30 agreements were signed by the two presidents while that silly neighboring continent to the west managed to embroil herself in confusion as traders and analysts from Istanbul to New York realized with horror that the bookies don’t always get it right. In characteristic single-minded fashion, the agenda of the two world leaders proceeded forward like an unstoppable tank, seemingly oblivious and immune to the contagion unfolding on world markets.
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