Standard Chartered Gets HSBC'ed

Just because one foreign - note: not local because US bankers know very well where the bodies are buried -  bank (whose CEO forgot to bribe American congressmen as efficiently as some other bank CEOs), namely HSBC, was not enough to convince Americans just how active America's corrupt political muppets are when it comes to eradicating the evil banking scourge, here comes redirection target #2:

• STANDARD CHARTERED MAY FACE SUSPENSION OVER IRAN TRANSACTIONS
• BANK HAD $250 BLN IN TRANSACTIONS WITH IRAN, REGULATOR CLAIMS
• STANDARD ORDERED BY N.Y. FINANCIAL REGULATOR TO HIRE MONITOR
• STANDARD CHARTERED ORDERED TO APPEAR BEFORE N.Y. REGULATOR

A Little Perspective On What Lies Ahead

Many finance-oriented critiques start from the position that our problems largely stem from the financial/political dominance of Elitist cartels and cabals. Clearly, the malinvestment, exploitation, predation and disregard for the law that characterizes the rule of political-financial Elites in both developed and developing nations have wreaked havoc on societies and economies around the globe. Implicit in this critique is a dangerously naive assumption: if all our problems can be traced back to Elitist cabals such as the Federal Reserve and the European Central Bank, then it follows that the subjugation or eradication of these concentrations of self-serving power would remove the cause of our problems. Alas, that would be a welcome step in the right direction, but that alone would not resolve the structural causes of our devolution. Freeing ourselves of self-serving Elites would certainly create an opening for structural transformation that is currently impossible, but the transformation will require changing much of what the average citizen takes for granted as a "given" or even "right."

Fake Tweets About Syrian President Assad's Death Cause All Too Real Spike In Crude And S&P

And the update comes as expected: RUSSIAN INTERIOR MINISTRY DENIES ISSUING ANY STATEMENT ON ASSAD'S HEALTH VIA TWITTER: REUTERS
Moments ago, the apparently fake twitter account of the Russian minister of the interior Vladimir Kolokoltsev (which was created days ago) sent out the three completely unconfirmed and uncorroborated tweets stating that Syria's president Assad "has been killed or injured" which the market, in all its ultra-high speed trading wisdom, took and ran with, not waiting for any actual confirmed news to be released (because obviously Russian official channels have never heard of news wires such as Interfax).End result: WTI soaring by over $1 to just shy of $92, on what very well may be completely fake news, dragging the entire market higher with it.

Four-Year Silver Probe Set to be Dropped

Eric De Groot at Eric De Groot - 2 hours ago

Who are they kidding? Chief Wiggum's rendition of “shows over - nothing to see” best describes the silver game, "Ok folks, shows over, nothing to see here, OH MY GOD! "Nothing To See Here" Headline: Four-Year Silver Probe Set to be Dropped A four-year investigation into the possible manipulation of the the silver market looks increasingly likely to be dropped after US... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 

 

Follow The Long-Term Trends & Cycles

Eric De Groot at Eric De Groot - 4 hours ago

Long term stock market trends are not easily reversed by short-term noise. History reveals that declines into statistical extremes are followed by advances into opposite extremes (chart 1, 2, 3). This suggests that the 2009 stock market could confound the experts by rallying until 2015. Extreme readings (red boxes) after 2012 would suggest... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

This Is How $14 Trillion Flows Every Day Through The US Financial System

After several weeks ago, the New York Fed was kind enough to tell us that absent perpetual expectations of Fed generosity, the stock market would be over 50% lower, today its intrepid bloggers focus on another critical aspect of the US financial system, and the Fed's mediation thereof: namely visualizing the "plumbing" that keeps the financial system afloat. From the FRBNY: "On a typical day, more than $14 trillion of dollar-denominated payments is routed through the banking system. Critical to a well-functioning economy are the timing and smooth flow of dollars for large-value transactions and the infrastructure that enables that dollar flow. This financial market infrastructure provides essential economic services—“plumbing” for the economy—and is made up of a variety of entities." How does this look on an hourly chart? Thanks to the Fed, now we know.

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Chart Of The Day: Garbage Shall Set You Free... From GDP Manipulation

It is no secret that just like the Achilles heel of China's goalseeked GDP number is the country's ever declining electric output, so the best coincident indicator of what is really going on behind the scenes with US GDP is railcar loadings of waste and scrap: i.e., garbage. As Bloomberg explains: "One closely watched economic indicator is the rail car loads of waste and scrap materials." Logically: "The more we demand, the more waste is generated by that production." In other words, if one is seeking validation that numbers reported by the BEA are even remotely credible, the best place to turn to is railcar loads of garbage. However, not surprisingly, such validation will not be found in the actual data. As the chart of the day, courtesy of Bloomberg Brief, demonstrates, if garbage is the benchmark, the US economy is now contracting faster than it has at any one point in the past 3 years and is on pace to recreate the economic collapse last seen after the Lehman bankruptcy. Perhaps another reason why central planners have latched on to stock markets and will just not let go.

With Earnings Season Nearly Over 60% Of Companies Have Missed On The Top Line, Revenues Down 1% From Last Year

The second quarter earnings season is almost over with 87% of companies reporting. And so far it has been an unmitigated disaster, with only 51% of companies beating on the far easily fudgible bottom line number (which further facilitates the transition of America to a "part-time worker society" as repeatedly demonstrated here), but a stunning 60% of all S&P member missing on the top line. More importantly, for the first time since the Lehman collapse, year-over-year revenue "growth" will be negative, declining at 1% from Q2 2011. Whether the reason is due to FX exposure in a world in which the USD suddenly found a major bid in the past 3 months, or because of corporate unwillingness to reinvest their cash into their business and increase CapEx is unknown. But one thing is certain: absent central bank intervention, which for some inexplicable reason has seen the PE multiple of the S&P rise to 2012 highs, the stock market would not be where it is today if corporate fundamentals had anything to do with actual stock price.

Spain's Stock Exchange Has Been Halted For Over 4 Hours Due To "Technical Glitch"

Update: IBEX resumes for trade with a nearly 5 hour delay, last seen higher at 1.68%. We can only hope the Knight algo is not to blame for yet another round of headless chicken buying.
Last week it was Knight, today it is the Spanish stock market. Following a halt for a "technical glitch" just after 4 am Eastern time, Spain'sstock exchange , the IBEX, is still not trading as of this posting. So how will Spain and the ECB declare victory if they are unable to demonstrate the daily ramp in Spanish stocks (where shorting financials is once again forbidden.... because Europe continues to be "fixed").

Best Buy Pops On Dubious Ex-Chairman $24-$26 Take Over Offer, To Drop Once Market Digest (Lack Of) Details

The company which has lately is best known as Amazon's physical showroom, aka Best Buy, is in play once again, this time on yet another highly dubious speculation of a takeover by the company's founder, Richard Schulze, who has offered to take the company private at $24-26/share. So far so good. The problem: a highly confident letter by Credit Suisse meaning zero fixed financing is in place. Frankly, it is surprising Jefferies did not engage here, because as those who have observed the kinds of "weak" MBO offers as this one will certainly be, "highly confident" financings almost never work out, especially those which assume to refi $1.7 billion in debt for a distressed company. It gets better: Schulze has not even done due diligence for which he is asking the board's permission. Expect the initial pop on the headline to fizzle very quickly the realization that the probability of this deal actually happening is negligible (see every other "highly confident" take over by Trian's Nelson Peltz virtually all of which have fizzled in the past 3 years).

The "Game Tree" Explains Why The "Risk Of An Ugly End Game Is Rising"

Virtually all developments in Europe over the past two years can be easily explained using a simple version of three actor game theory. So can the endless delays in reaching an actionable resolution. The problem, however, as Bill Gross earlier, and now Bank of America, shows, is that the incentive to delay, based at least on one the actors' preferences - that of the market - is becoming very tenuous, and "the risk of an ugly end game is rising." By implication, this means that the goodwill of both Europe's monetary and political authorities is waning by the day, as last Thursday demonstrated so very vividly.

Europe's Question Of Today: “If They Will Fund And How?”; The Question Of Tomorrow “Can They Afford It?”

Never forget; there are two sides to the European fiscal proposition. There are the funding nations and the borrowing nations and I suggest that the focus of the markets will soon turn to the funding countries and their capacity to provide capital without endangering themselves. I think the attention of the markets is about to turn to Germany and France, the largest components of the European Union, and with GDP’s of $3.2 trillion and $2.77 trillion respectively the question is going to come around to just how much these two countries can support without sending themselves into a serious economic quagmire. The EU officially recognized sovereign debt of Greece is now 22.33% of the GDP of Germany and 25.80% of the GDP of France. The banks in Europe dwarf the sovereigns with balance sheets three times larger than of all of the EU nations and with Spain having now fallen and Italy about to go; just how much that can be afforded is quickly coming into the focus of many money managers.

Bill Gross On Why Europe's Plan "To Get Your Money" Is Doomed

The very vocal head of the world's largest bond fund has long been critical of the global ponzi system better known as the "capital markets." Now, finally, he shifts his attention to Europe, where the interests of his parent - Europe's largest insurance company Allianz are near and dear to the heart, and deconstructs not only the biggest challenge facing Europe: getting access to your money, but also the fatal flaws that will make achieving this now impossible. To wit: "Psst! Investors – do you wanna know a secret? Do you wanna know what Angela Merkel, François Hollande, Christine Lagarde and Mario Draghi all share in common? They want your money!" .... but... "private investors are balking – and for what it seems are good reasons – because policy makers’ efforts have been, until now, a day late and a euro short, or more accurately, years late and a trillion euros short." And so they will continue failing ever upward, as permissive monetary policy which allows failed fiscal policy to be perpetuated, will do nothing about fixing the underlying problems facing the insolvent continent. Then one day, the ECB, whose credibility was already massively shaken last week, will be exposed for the naked emperor it is. Only then will Europe's politicians finally sit down and begin doing the right thing. It will be too late.

Frontrunning: August 6

• Monti Warns of Euro Breakup as Tussle Over Spain Aid Hardens (Businessweek)
• Italy doesn't need German cash, Monti tells Germans (Reuters) - at least we know who needs whose cash...
• Spain has time to Wait for Clarity on EU Aid -Econ Min (Reuters) - which came first: the Spanish bailout request or the denial to need a Bailout request? Ask the Spanish 2 year...
• Bundesbank Weidmann’s opposition to a proposed new wave of ECB bond purchases has support of Merkel’s CDU - Volker Kauder
• China media tell U.S. to "shut up" over South China Sea tensions (Reuters)
• Top Chinese Leaders Gather in Annual Summer Conclave (WSJ)
• Greece Agrees With Troika on Need to Strengthen Policy (Bloomberg)
• Coeure Says ECB Should Look at Getting Loans Into Real Economy (Bloomberg)
• Italy Central Banker Sees Potential Rate Cut as Euro Economy Slows (WSJ)
• A Dose of Dr. Draghi's 'Whatever It Takes' (WSJ)
• Greek bank head sent savings abroad (FT)

Shell Pulling Cash Out Of Europe Due To "Shift In Willingness To Take Risk"

Even as the ECB is desperately doing its best to stick a finger in every hole in the leaking European dam, in which just like in the US failed monetary policy is a substitute for sound fiscal one, and in which the pattern of interventions and cause and effect will now follow that of Japan until the bitter end, others are not waiting around to see the results. Reuters reports that Royal Dutch Shell is pulling some of its funds out of European banks "over fears stirred by the euro zone's mounting debt crisis, The Times reported on Monday." And shell is not the only one: more and more institutional are actively preparing to lock up their cash on a moment's notice, an eventuality which can be seen best at the ECB itself, where deposits with the ECB (collecting 0.00%), dropped to just €300 billion the lowest since 2011, while the ready for withdrawal current account saw holdings rise to a record €550 billion overnight, a €20 billion increase overnight. And so the cycle repeats anew, and Gresham's law rises to the surface, as bad money pushes out good money, and in return the situation deteriorates once more, until the next time much more than just harsh language out of the ECB will be needed just to preserve the status quo.



Why Europe Matters… And How Spain Could Wipe Out Your 401(k)

Posted by : Phoenix Capital...

Post date: 08/06/2012 - 11:02

  In simple terms Europe is a HUGE deal for everyone. We’re not talking about some distant region far off in the distance that we will watch go down from our decks. We’re talking...

BS At The BLS Leads To Profitable Short Opportunities As Hopium Smokers Get High Off Of Depreciated Dime Bags Of Manipulated Eup

Posted by: Reggie Middleton

Post date: 08/06/2012 - 09:12

Rosy econ data + low valuations in markets + cure to European debt crisis, Abercromie & Fitch, Aeropostale, etc. a screaming buy?

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